Wojciech Matysiak
MyFXspot.com
The USD ended little changed on Wednesday after reaching a 13-month peak against a basket of currencies. Upbeat figures on U.S. retail sales, manufacturing output and worker productivity supported the greenback and the view of steady U.S. economic growth. But USD sell-off during the North American session suggests a corrective move is due. We opened EUR/USD long at 1.1350 yesterday and today's price action confirms our bullish view.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Long
Open: 1.1350
Target: 1.1520
Stop-loss: 1.1270
Recommended size: 1.88 mini lots per $10,000 in your account
Short analysis: The long lower wick on Wednesday's daily candle suggests a bounce is due. We opened EUR/USD long at 1.1350 today.
GBP/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: We could see fading bearish momentum on Wednesday, which improves chances for rebound. The nearest resistance levels are 1.2750 (pivot point) and 10-day MA at 1.2857. We stand aside for now.
USD/JPY
Trading strategy: Short
Open: 111.40
Target: 109.40
Stop-loss: 112.40
Recommended size: 1.66 mini lots per $10,000 in your account
Short analysis: Prices thrown lower after running into the 21- and 30-day MAs by the 111.44 high. We opened a short position at 111.40, as previously assumed. A close below 110.65, 50% of the 108.12-113.18 rise, would put in play Thursday's 110.37 cloud base, the 61.8% at 110.05 and converging 100- and 200-day moving averages by 109.90.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The USD/CAD peeks above falling daily cloud top, before moving back within the cloud. We do not see clear signals now. Canada's July inflation report is due on Friday.
AUD/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Pair sets a new long-term low and monthly RSI is biased down to keep overall sentiment bearish. The long lower wick on the daily candle suggests a bounce is due. We will probably sell the bounce, but stay aside for now.
EUR/GBP
Trading strategy: Long
Open: 0.8935
Target: 0.9050
Stop-loss: 0.8880
Recommended size: 2.15 mini lots per $10,000 in your account
Short analysis: Profit taken on EUR/USD short at 0.8910, earned: 100 pips, $395 per $10,000 in your account. We think the corrective downward move is done. We opened a long position at 0.8935 now with the target at 0.9050.
Our research is based on information obtained from or are based upon public information sources. We consider them to be reliable but we assume no liability of their completeness and accuracy. All analyses and opinions found in our reports are the independent judgment of their authors at the time of writing. The opinions are for information purposes only and are neither an offer nor a recommendation to purchase or sell securities. By reading our research you fully agree we are not liable for any decisions you make regarding any information provided in our reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise you to do your own research before making any investment decision.
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