Dzhafer Medzhakhed
Chifbaw LLC
Recommendations:
- Low risk: sell the EURUSD at 1.3650, SL 1.3710, targets 1.3600, 1.350, 1.3400.
Analysis:
The EURUSD remains stuck at the upper edge of its range, unable to convincingly break above 1.34 despite the fact it has moved above its trend line resistance (see chart). The market is uneasy, and unconvinced, may be disoriented by the fed mixed signals. In such times, trading approaches that favor trading the ranges or simply abstaining are the most favored. In EURUSD, the only opportunity that we see potentially is to short the pair should reach high levels next week (~ 1.3650 previous peak), but this is rather unlikely.
The USDJPY funnel is getting tighter and tighter. The perfect doji on the daily chart just on the edge of the Ichimoku cloud suggests the very strong indecision of market participants. Even though a short entry at 98.7x, with SL at the previous high of 99.1x is likely to provide some pips, we would prefer to stay aside until the market gives a clear signal on which way to go.
The AUDUSD and GBPUSD are even more difficult to read, and should be avoided.
EURUSD Weekly Chart
USDJPY Daily Chart
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