Trading ideas: Sell EUR/USD at 1.1710 after ECB announced its dovish tapering plan
|The euro on Thursday suffered its worst day against the dollar since the UK's Brexit vote nearly two years ago after the European Central Bank unexpectedly indicated that it planned to keep interest rates at record lows into the summer of 2019. That stance contrasts with the steady rate hike campaign that the U.S. Federal Reserve signaled on Wednesday as it dropped its pledge to keep rates low "for some time."
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Sell
Open: 1.1710
Target: -
Stop-loss: 1.1810
Recommended size: 1.50 mini lots per $10,000 in your account
Short analysis: Rally towards May 16 high is soundly rejected. The ensuing slide results in a bearish outside daily candle and the pair falling back below the 10 & 21-DSMAs. RSIs are biased down and an monthly inverted hammer candle forms. An offer is placed at 1.1710 and the 2018 low will be targeted at a minimum.
GBP/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Abrupt change in direction and bears back in control. Direction now clouded by severe price chop. Pair targets 1.3205 2018's May 29 low, below October 6 low at 1.3027 in focus.
USD/JPY
Trading strategy: Buy
Open: 110.30
Target: 111.90
Stop-loss: 109.50
Recommended size: 2.07 mini lots per $10,000 in your account
Short analysis: We see only limited recovery in USD/JPY today given what happens on other pairs. May high at 111.39 and the weekly Cloud base and downtrend line from Aug 2015 in the 111.90s are in play. We have placed a bid at 110.30.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The USD/CAD rallies with broad USD strength after dovish ECB hold. The pair rose to two-and-a-half-month high. Global/NAFTA trade tension angst lingering aids USD lift. We stand aside.
AUD/USD
Trading strategy: Sell
Open: 0.7540
Target: -
Stop-loss: 0.7600
Recommended size: 2.50 mini lots per $10,000 in your account
Short analysis: Bear sentiment increases as the 21-DSMA turns into resistance and the daily cloud and trend line off May's low get broken. An inverted monthly hammer candle and falling RSIs bolster bear sentiment. A sell offer is placed at 0.7540 and the target will be the 2018 low at a minimum.
EUR/GBP
Trading strategy: Sell
Open: 0.8750
Target: -
Stop-loss: 0.8810
Recommended size: 1.88 mini lots per $10,000 in your account
Short analysis: The pair falls back below the 100 and 10-DSMAs, RSIs are biased down and the trend line off April's low gets pierced. We have placed a sell order at 0.8750.
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