Four major high-volatilty trades this week, forex trading the FTSE100 rally
In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDJPY, EURUSD, the FTSE100, GBPUSD, the NASDAQ, the Nikkei, and the Hang Seng Index.
The news on financial news outlets today is about the sell-off in Asia, as we can see from these price action gaps on the Nikkei and the Hang Seng.
The question is, will this risk-off sentiment spread to the major US Indices?
We see all the major US indices, like the NASDAQ, falling on political uncertainty, geopolitical threats, and the fear of an AI bubble.
We may yet get our Santa Claus Rally later in the month, but right now, investors and traders are watching the Economic Calendars.
We are expecting, finally, the delayed Non-Farm Payroll report but the data may be way off due to the confusion.
If the result is worse than the 51,000 jobs, or the 4.5% unemployment rate, we will see a fall in USD, and in this uncertain market, volatility in the indices.
That doesn’t mean the indices will fall.
Poor employment data may indicate that the Fed could lower interest rates, which is good for the indices.
Just be careful and watch for pullbacks before direction is established.
We also have interest rate decisions from the BoE, the ECB, and the BoJ.
The prediction is that the BoE will lower rates making GBP weaker and the FTSE stronger.
We see a strong GBP on the daily GBPUSD chart but price action has formed a rising wedge which is a reliable bearish indicator.
On the UK’s FTSE100, we see the opposite of the Asian and American markets, and, again, the BoE news may make it rise further.
EUR is generally stronger this year and you will see that on almost every time frame, EURUSD is VERY strong in the $1.175 area.
We see an ascending triangle forming so let’s keep an eye on the charts and both US and ECB news this week.
Finally, the BoJ are predicted to raise rates and the yen is already getting stronger.
On the daily chart on USDJPY, we see price action has formed a double top and a long way to fall to the next key level of support.
However, looking at the 4-hour chart, we see what could be a falling wedge.
Regardless, watch the economic news from the US and Japan for clues.
That’s all for now.
CFDs and FX are leveraged products, and your capital may be at risk.
Author
Brad Alexander
FX Large Limited
Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.
