Forex Trading Outlook: October 5–9, 2015

All eyes on equities again. Has September’s weak jobs report already been forgotten?

Once again we can look forward to another interesting week ahead as the Forex market looks to Equities to drive direction. No doubt about it the NYSE was encouraged about the news out of Europe and Asia as it looked like the markets had found strong support starting late last week and continuing into this week.

But Wait. If September’s Weak Jobs Report Didn’t Derail the USD, What Will?

Sentiments are once again mixed as the US Job reports scared the market for at least an hour last Friday as the Stock market initially tanked and the USD followed in its wake. The anticipated employment figures for September were so way off any analysts wildest dreams that it was nothing short of embarrassing. I initially thought maybe this is it. I sat watching the charts and it was wild. Could it be that the Dollar bulls finally received the knockout punch? The charts rally continued screaming in all directions away from the USD.

Commodity Pairs

Then just as if someone had waved a magic wand, sanity prevailed and the greenback reversed and kept gaining as the session ended. The Commodity pairs, namely the Cad and Aud, found some support as gold showed some life. Equities turned positive and all we could say was, “ What has just happened”? I think the rules have been turned on their head.

Today analysts across the board are typically hedging themselves – the markets equities and commodities looks like positive for today anyway. But tomorrow is another day, so we shall see. Since August it has been a roller coaster with the markets slowly but surely drifting south. We need a lot more than a few good days to return investor confidence.

If Commodities keep gaining we could see a pop in the major commodity pairs; CAD and AUD.

Not much change expected

I have said it before and will say it again. Until the markets have a sustained at least a week plus of positive movement it’s going to be a slow drip downward. For now, the USD has nowhere to go but where it’s been headed for the last year.

WE DON’T EXPECT MUCH CHANGE FROM OUR TREND FOR THE WEEK AHEAD.

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Ben Lewis, the author of this article, has over 20 years trading experience and currently serves as chief strategist on the ForexSignal Trading Desk. Ben is available for one-on-one mentoring training, specializing in Forex Entry and Exit trading strategies. Please email email Ben for more information.