The dollar started a week full of important economic data on a stable footing, with investors leery of the Federal Reserve starting to exit its ultra-accommodative stance even as coronavirus infections soared.
On Friday, the dollar posted its best performance in three weeks, rising around 0.6 percent against the euro.It benefitted from both safety flows as well as the policy outlook, which lifted rates on US Treasuries.
Early in the Asian session, it maintained advances to keep the common currency at $1.1810. It was likewise stable at 109.91 Japanese yen, with its strength stifling rallies in the Australian and New Zealand currencies for the time being.
The Australian dollar was modestly higher in early trade at $0.7362, but it has failed to hold above $0.74. Despite the Reserve Bank of New Zealand’s plans for interest rate hikes, the kiwi was modestly weaker at $0.7115. It has also struggled to break out of a month-long range.
The Data Agenda
We have a relatively busy day ahead on the economic calendar with several releases in Europe and the US. Moving forward into next week, the series of retail sales and GDP, along with unemployment claims and crude oil inventories, will remain in the highlights. These events typically control the direction of the market.
Meanwhile, the chatter surrounding Sino-US matters as well as covid-related headlines will also be crucial to watch.
Forex Signals Brief – Update on Signals
The FX Leaders Team had a quiet session, finishing with seven green signals in EUR/JPY, GBP/USD, EUR/GBP, GOLD, EUR/JPY, LTC/USD, and USD/CAD.
Litecoin (LTC/USD) – Active Signal
LTC/USD is trading in line with our signals forecast. Litecoin is trading add 176.98 level while our trading signal is to open up buy position at 180.270 along with a stop loss of 138 and take profit of 230 level.
So far, Litecoin is expected to perform as per our signal. The pair is gaining strong support at 170 level, which is being extended by the triple bottom level.
Binance Coin (BNB/USD) – Active Signal
BNB/USD is currently trading at 399.78, and we recommend opening a position at 408.24.On the daily timeframe, BNB/USD is consolidating in a narrow trading range that is demonstrating indecision among investors.
On the other hand, BNB is likely to cross below the 50-day simple moving average at the 406 level. The closing of candles below 50 simple moving averages has the potential to drive a selling position in the market. This can put our signal at risk, but our risk ratio is pretty good here.
So if the market breaks below the 50 SMA, our stop loss will be triggered at the 390 level, whereas the failure to break below the 400 level is likely to trigger a bounce off until the 530 level, which is our take profit.
Ripple (XRP/USD) – Active Signal
The XRP/USD is trading at the 1.0715 level and is facing strong resistance at the 1.3869 level. The pair was trading in an overbought zone, but it has started to come out of the overbought region. Ripple could exhibit a slight bearish correction until the 50-day simple moving average around the 0.7043 level, and after testing this level, we can expect a bullish bounce off of it.
Our trade idea is to open a buy position at 1.28 along with a stop loss of 0.50 and take a profit of 2.2. So far, the trade signal looks good, but we will keep updating you in our next signals brief. Stay tuned and have a very good week ahead.