Forex Trading Commentary
Daily Forex Trading Commentary, Price Action Trade Setups & Signals by Nial Fuller
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GBPUSD – Sterling/dollar reverses gains following Scotland vote
The GBPUSD initially surged higher today as Scotland voted to remain in the UK. However, price ran into resistance just below that 1.6535 – 1.6640 zone that we’ve discussed in recent commentaries and reversed all gains from there, ending the day lower. Next week, we could see price move lower as long as it stays contained under that resistance zone. Traders can look for a potential sell entry up around 1.6390 – 1.6400 area or just above if price begins retracing higher early next week. Whilst the price stays contained under 1.6535 – 1.6640 resistance area we will retain a bearish bias on this market.
In the members daily trade setups newsletter today, we will discuss in more detail the reversal signal on the GBPUSD, the upcoming support levels for EURUSD, the bearish long-tailed pin bar in GBPJPY and the continuing bleak outlook for the Gold market. To learn about becoming a member, click here.
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In the currency markets today, the U.S. dollar moved higher again against a basket of major currencies, ending its 10th straight week of gains. Investors continued to bet that U.S. interest rates will rise more quickly than expected.
The U.S. dollar index was last at 84.753, its strongest daily gain in almost two weeks.
The British pound surged to a two-week high against the greenback today as Scotland voted to remain in the UK, however the sterling gave back gains and fell lower on late-day profit taking.
The euro hit a 14-month low against the greenback today, of $1.2827.
In the U.S. markets today, stocks ended little changed following Alibaba’s strong debut which was offset by tumbling shares as Oracle and Yahoo fell.
The Dow added 13.75 points or 0.08 percent, the S&P 500 lost 0.96 points or 0.05 percent, and the Nasdaq lost 13.64 points or 0.3 percent.
Upcoming important economic announcements (New York time): 9/20/2014
Day 2: All – G20 Meetings
9:00am EST: Euro-zone – ECB President Draghi Speaks
9:45pm EST: China – HSBC Flash Manufacturing PMI