Thursday starts with a continuation of the optimism on Gold and SP500. Traders seem in a good mood but in most of the instruments we do not have any spectacular movements. Do not worry though, as always, we managed to find the best three setups on the market today as well, they look really promising.
First one is the most popular instrument on the market – EURUSD. Today, the pair made new long-term highs and managed to test the psychological resistance on 1.19. This resistance looks pretty strong as another contact with this area ended with a very sharp reversal. It’s the third time that we are testing this resistance and the current bounce looks really promising for the sellers. EURUSD seems really overbought in the long-term, which can be a good occasion for a short-term downswing. In my opinion, as long as we stay below 1.19, the current sentiment is negative.
Now USDCAD, where the price managed to successfully break the 1.33 support. We can see that this area was extremely important since August 2019, so we can assume that this breakout is meaningful and traders should not ignore it. It is very common for the price to test the broken support as a resistance and currently that is the most probable option. The main sentiment remains negative though and will stay like this as long as the price will remain below the 1.33
I will finish with one of traders favorite pairs – GBPJPY, which attracts speculators thanks to its volatility. Here, the price broke the upper line of the descending triangle pattern, which gave us a buy signal. Overnight, the broken resistance was tested as a support and the price bounced higher. Today, we had tier-1 data from UK, which helped GBP to remain strong, so current highs are just a result for the technical and fundamental analysis working together. As long as we stay above the upper line of the triangle, the sentiment is positive.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.