In our free forex signals news, the EURUSD lost nearly a percent in early trading yesterday and found some support around the second support level (1.2986) although the currency was largely unfazed by the fake news report. Weak German PMI added to euro pressure in the morning and there was some talk among traders of the increased possibility of a future rate cut by the ECB. EURUSD looks to be struggling to stay above the 1.30 level at this point and there are no strong reasons for going long any time soon.
EURUSD. 1 hour chart. Charts supplied by IG Index
The US dollar was most strong against the Swiss franc yesterday with the market touching the pivot then exploding to finish well beyond the third resistance level. The strong gains came as US stocks outperformed and gave an indication that the US economy might power ahead in the coming quarter. With such strength seen yesterday, we may see a quieter day today, with the market likely to pull back a little towards the day’s pivot.
USDCHF. 1 hour chart. Charts supplied by IG Index
USDJPY was one of the only currencies to move strongly on the fake twitter report yesterday which shows just how stable and liquid some forex markets are these days.
USDJPY is only 60 pips away from the 100 level now and with key inflation data out of Japan on Thursday, the market may well take out this level at last. Watch for a brief pull back in early trade and then a strong continuation move to 100 and possibly a little beyond.
USDJPY. 1 hour chart. Charts supplied by IG Index
Traders will have their eye on Apple today after the company’s earnings report and it will likely act as a gauge for the wider market. There is also some economic data out that is of interest with Aussie CPI data (expected at 2.8%) and US durable goods orders (expected at -3.0%).