Forex Daily Room Review 10-20-2015

Forex Chops as Markets Rest Before ECB

In yesterday's trading room, I discussed the possibility of the eur/usd coming down to a temporary support level and that I expected a possible move higher. With Gold holding strong today, we looked into the Yellen speech wondering if something would come out of this meeting to allow us to gain a direction some clues as to the USD. To our dismay, the speech was nonsense, I do not know why cnbc decided to broadcast this nonsense. It was about the department of labors tribute to one of their well respected alumni. The boredom was some of the worst chop we have seen since the Holidays.

Looking past this.. I am expecting the SPX500 to find some selling here at these major levels. I have positioned myself to take advantage if the opportunity arises. We have made a major move. and although a move higher may still be in effect, I feel some sweet areas are ripe for trades on the equity futures indices.

EUR/USD

So where are we headed on the Euro/Usd? Today I became a short term bull. I have outlined my trades and stops in our members section. With the ECB coming on Thursday, I feel many traders are overly dovish on the outcome. Notice below this tricky chart lacks some direction however overall presents a 'oversold' euro that may be ready to rock higher soon.

USD/JPY

We have reached some key areas today 119.75 was a major overhead resistance level as well as the round number of 120.00 that we have yet to breach intraday. I look for a possible correction providing equities give a helping hand. Below is a chart of the usdjpy pair. You will see it has made a significant move since its recent lows. I am expecting a short term reversal soon and I have outlined all key levels for a short as well as a target in the trading room 'Members Section'.

GBD/USD

I am bearish on this pair and have posted some key levels in our members sections for a possible support area to take profits on shorts.

AUD/USD

I am neutral on this pair at the moment. With uncertainty in China, I would rather stay away from a long or a short positions.