Today is Sun, November 19, 2017 13:19:26 GMT
RSS Follow Us Follow us on Twitter Friend us on Facebook
Contributors Forex: Euro May Rebound in Quiet Trade, Offering a Short Trade Setup

Talking Points:

  • Euro May Lead Amid Correction, Offering a Short Trade Setup
  • Japanese Yen Soft in Asia as Nikkei 225 Futures Gap Upward
  • New Zealand Dollar Rebounds After Last Week’s Blood-Letting

The economic calendar is quiet in European and US trading hours, offering little by way of market-moving event risk. That opens the door for corrective price action as investors digest last week’s late surge of activity that took the CVIX index of currency market volatility to an eight-day high.

The swift pickup in activity followed an unexpectedly dramatic ECB rate decision where central bank President Mario Draghi threatened possible intervention into the Euro exchange rate. Not surprisingly, the single currency came under broad-based pressure, and so may now lead the way upward amid a correction. We are looking for a selling opportunity.

The Japanese Yen narrowly underperformed in muted overnight trade as Nikkei 225 futures gapped higher to start the trading week, undermining demand for the safe-haven currency. The New Zealand Dollar corrected upward having completed the largest five-day drop in three weeks on Friday.

Asia Session

European Session

Critical Levels

Recent posts by DailyFX