We welcome you to the trading month of October. Even though, the last trading month has proved to be non-profitable for day traders, it was a great month for swing traders while our swing signal trades generated an overall profit of 357 pips in September.
The British pound declined gapped lower at the open of the trading week after U.K. Prime Minister Theresa May said she will start pulling the Brexit trigger in the first quarter of 2017. May made a clear statement when she said on Sunday that they "will invoke Article 50 no later than the end of March next year.” Technically, the pound broke below the recent support level at 1.2915 and short-traders were already able to gain a good profit this morning. We now see a next support level at 1.2820 while a resistance is seen around 1.30.
The euro is still trading sideways within its recent trading range between 1.1250 and 1.1150. As long as the EUR/USD remains confined to a price range between 1.1280 and 1.1130 there is nothing new to report.
The focus this week will again shift to the U.S. Payrolls report on Friday while the report is expected to show steady labor-market improvement. An upbeat result may boost the U.S. dollar as it would bolster Federal Reserve rate hike speculation before year-end.
Today's ISM Manufacturing Survey, scheduled for release at 14:00 UTC will be important to watch. Supportive ISM data may push the dollar higher versus its counterparts.
We wish you a good start to the new week and many profitable trades.
Here are our daily signal alerts:
EUR/USD
Long at 1.1260 SL 25 TP 20, 40
Short at 1.1210 SL 25 TP 20, 40
GBP/USD
Long at 1.2960 SL 25 TP 20, 40
Short at 1.2915 SL 25 TP 20, 60
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