The ECB remains constructive. Today, it left monetary policy unchanged, confirming its expectation that net asset purchases will stop in December and policy rates will remain at their current levels at least through the summer of 2019. The ECB also broadly confirmed its outlook for GDP and CPI as well as the risks to growth, with the latter still seen as broadly balanced amid resilient domestic demand. The only concession to the doves was the acknowledgement that uncertainty relating to protectionism, emerging markets and financial market volatility “gained more prominence recently”. The ECB did not discuss its reinvestment policy today, but Draghi stated that the ECB will shed some light here by December.
The Bank of England kept interest rates on hold and highlighted greater financial market concerns about Brexit, a month after raising borrowing costs.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Long
Open: 1.1550
Target: 1.1750
Stop-loss: 1.1605 (raised from 1.1450)
Recommended size: 2.00 mini lots per $10,000 in your account
Short analysis: Fourteen-day momentum remains positive, reinforcing the overall upside potential. The scope is for gains through the 1.1734 August peak. We remain long at 1.1550 for 1.1750 target. We have raised our stop to 1.1605 to lock in some profit. EUR/USD reaction after today’s ECB meeting is encouraging.
GBP/USD
Trading strategy: Buy
Open: 1.3030
Target: -
Stop-loss: 1.2930
Recommended size: 1.50 mini lots per $10,000 in your account
Short analysis: We see more intensive push inside the daily cloud and a pick up in 14-day momentum, which suggest near-term outlook remains bullish. We have raised our bid to 1.3030.
USD/JPY
Trading strategy: Short
Open: 111.30
Target: 109.30
Stop-loss: 112.30
Recommended size: 1.67 mini lots per $10,000 in your account
Short analysis: Bulls have once again broken above the daily cloud top, now at 111.58 and are now seeking a daily close above the 111.88 Fibo, a 61.8% retrace of the 113.18 to 109.78 (July to August) fall. Bulls should be mindful of previous false breaks above the cloud top, however.
USD/CAD
Trading strategy: Sell
Open: 1.3065
Target: -
Stop-loss: 1.3200
Recommended size: 1.44 mini lots per $10,000 in your account
Short analysis: USD/CAD breaks below 100-day MA (1.3039) on NAFTA talks and higher oil prices. On the other hand, the support area just below 1.3000 is holding for now, with more firm support tipped ahead of 1.2900 at 1.2915 the lower 21-d Bolli and then the 200-DMA by 1.2860. Our trading strategy is to sell on upticks.
AUD/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Bounce from the 2018 low extends and nears the 10-day MA. Daily RSI is biased up so this bounce might extend. Monthly techs remain bearish though. Signals are a bit mixed so we will stand aside until the outlook clears before entering a position
EUR/GBP
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Bear bias holding on dailies but doji action still suggests a lack of market conviction. However, failure to regain ground above the daily cloud top will keep balance skewed for further losses. 55-day MA (0.8926) could also prove a key level. We stand aside.
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.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.