Weekly Forex Trading Signals For 10.21- 10.27.2024
BRICS Summit
During its BRICS presidency, Russia aims to promote cooperation in politics, security, economy, and culture, with a focus on data sharing and reducing reliance on the US dollar.
The summit’s emphasis on de-dollarization may prompt a US reaction, as former Trade Representative Robert Lighthizer warned that a re-elected Trump could impose 100% duties on countries rejecting the US dollar, potentially sparking new trade wars.
UsDollar is on the rise and testing the 103.20 support level. The RSI and MFI oscillators show bearish divergences, giving a sign to correction to 102.80, aligned with the 161.8 Fibonacci, with a further rise to 104.50 resistance.
BOC Monetary Policy Report
The Bank of Canada’s Monetary Policy Report, set for release on October 23, will offer insights into its economic outlook and interest rate decisions.
With inflation easing and unemployment below expectations, traders are watching for signals of a possible 75 basis point rate cut by the end of 2024.
If expert forecasts are confirmed, this significant rate cut could weaken the Canadian dollar, setting a mid-term benchmark for the USCAD pair at 1.4000.
US30 is in a long-term bullish trend and has now reached critical resistance at the 161.8 Fibonacci level. The price has crossed the upper Bollinger Band, while a divergence has formed on the Money Flow Index (MFI).
•A rise above 43300 is likely to extend to 45600, aligning with the 238.2 Fibonacci level;
•A break of the trend line could start a correction to 41500 and 40300.
EURUSD has started falling sharply, and the price is holding near critical support, with %R indicating extremely oversold conditions.
•EURUSD may bounce from 1.0830 and reach 1.0900;
•However, the price may fall to the trend line and then start to rise.
XAGUSD has formed an ascending channel pattern with a short-term bullish trend. The price has reached ATH, creating two possible scenarios.
•If the bulls push the price above the 32.200 resistance area, the silver may rise to 34.900;
•A rebound and a break of the lower trend line are likely to bring XAGUSD back to 30.100.
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