Today’s Forex Guide

Super Mario Draghi Day


Oct.15.2014

Head of the European Central Bank (ECB), Mr. Mario Draghi (AKA Super Mario) has more influence over the euro's value than any other person. He spoke this morning and dues to speak again in the afternoon.

So we're gonna call today "Super Mario Draghi's Day" as he's speaking not once, but twice, to possibly act on his pledge to take further measures if needed, including QE. Both Mr. Euro and Mr.  British pound were boosted up.

super-mario-draghi ECB president

UK jobless rate came out slightly better than expected, but there was a rise in new jobless claims.  With mixed data usually comes a mixed reaction in the currency markets and that’s what we got in Sterling as the pair initially dropped ahead of and into the news, but quickly saw buyers hopping back in within the hour.

If you thought currency movements and commodities are unrelated, listen to this:

Canadian dollar weakened to its lowest in more than five years as prices for crude oil dropped to levels that may endanger development of the nation’s largest export and curb business investment.

Mr. Canadian dollar's shakiness could continue Thursday with Canada's Manufacturing Sales release at 1:30 PM GMT, at the same time when the US unemployment claims are out.

 

At 3 pm Federal Reserve Bank of Philadelphia releases its monthly manufacturing outlook survey ,  a leading indicator of US economic health.

Friday is again important both both Canadian and US dollar with Canada's monthly Consumer Price Index (CPI) at 1:30 PM GMT. Fed Head Janet Yellen is also scheduled to speak at 1:30 PM.

 

Intraday Forex Technical Levels


EUR/USD 4-hour Forex Dance Floor
EUR/USD 4-hour: Reaching the key resistance level.

Invest Diva Likes: Long positions above 1.2763 with 1.2844 and 1.2926 in extension.

If Pair Goes Nuts: Below 1.2763 look for further downside towards 1.2666 and 1.2600.

What's up on the Forex Dance Floor: The pair is heading to the key level at 1.2763 again above the Ichimoku's cloud with the RSI above the neutrality area.

Supports and Resistances
1.2926

1.2844

1.2763 Pivot Point

1.2666

1.2600


GBP/USD 4-hour Forex Dance Floor
GBP/USD 4-hour: Rebounding.

Invest Diva Likes: Long positions above 1.5959 with targets at 1.6084 and 1.6162 in extension.

If Pair Goes Nuts: Below 1.5959 look for further downside towards 1.5866 and 1.5787.

What's up on the Forex Dance Floor: The pair is rebounding from the previous bearish level at 1.5866 and the lower boundary of Bollinger band. The RSI heading up from the oversold zone.

Supports and Resistances
1.6162

1.6084

1.5959 Pivot Point

1.5866

1.5787


USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Moving down.

Invest Diva Likes: Short positions below 106.71 with target at 105.67 and 104.63 in extension.

If Pair Goes Nuts: Above 106.71 look for further upside towards 108 and 109.17.

What's up on the Forex Dance Floor: The pair continues to move down after confirming the Double Top pattern below the Ichimoku's cloud. The RSI is reaching the oversold zone.

Supports and Resistances
109.17

108

106.71 Pivot Point

105.67

104.63


USD/CHF 4-hour Forex Dance Floor
USD/CHF 4-hour: Reaching the resistance level.

Invest Diva Likes: Short positions above 0.9491 with targets at 0.9392 and 0.9336 in extension.

If Pair Goes Nuts: Above 0.9491 look for further upside towards 0.9573 and 0.9689.

What's up on the Forex Dance Floor: The pair failed to break the neckline of possible Double Bottom pattern and rebounded from the Ichimoku's cloud. The RSI is heading down from the neutrality area.

Supports and Resistances
0.9689

0.9573

0.9491 Pivot Point

0.9392

0.9336

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