Wojciech Matysiak
MyFXspot.com
ECB President Mario Draghi and his U.S. counterpart Jerome Powell were speaking before a central banking conference in Sintra today.
The forces holding back wages in the euro zone are gradually waning and the European Central Bank is confident that inflation will continue to rise back towards its objective of almost 2%, Mario Draghi said.
The U.S. jobs market does not appear overly tight and the Federal Reserve should continue with a gradual pace of interest rate rises amid a strong economy to balance its employment and inflation goals, Fed Chairman Jerome Powell said.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Sell
Open: 1.1640
Target: -
Stop-loss: 1.1730
Recommended size: 1.67 mini lots per $10,000 in your account
Short analysis: EUR/USD bias remains on the downside and the next bears’ target is the 2018 1.1510 low, a daily close below which will unmask the 1.1448 Fibo, 50% retrace of the 1.0340 to 1.2555 (2017 to 2018) gain. We lowered our sell order to 1.1640. If the order is filled, the target will be placed above the 1.1448 Fibo level.
GBP/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The GBP/USD breaches the 30-day MA lower bollinger line at 1.3164 and just betters Tuesday 1.3151 low. Momentum and stochs confirm latest drop and suggest lower levels in the pipeline.
USD/JPY
Trading strategy: Long
Open: 110.30
Target: 111.90
Stop-loss: 109.50
Recommended size: 2.07 mini lots per $10,000 in your account
Short analysis: The USD/JPY bulls recover after finding support ahead of 109.51 Fibo, 50% retrace of the 108.12 to 110.90 (May to June) recovery. Long tail of Tuesday's candlestick hints at a rejection of the downside. We are long at 110.30 for gains beyond June's 110.90 peak. The immediate focus is on 110.38 Fibo, 61.8% of the 110.90-109.55 drop.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Trade tensions and higher US-CA 2-year yield differential keeps USD/CAD bid. Pair trades near 1-year high by 1.3300. The probability of BoC interest rate 25 bp hike in July fell to 64%. A continuation of upward move is the most likely scenario in the near term.
AUD/USD
Trading strategy: Sell
Open: 0.7440
Target: -
Stop-loss: 0.7510
Recommended size: 2.14 mini lots per $10,000 in your account
Short analysis: Bear sentiment escalates as a new trend low is set. Further losses are likely as RSIs are biased down with no divergence, a monthly bearish outside candle forms and the pair dives deeper below the 50% Fibo of 0.6827-0.8136. The offer is lowered to 0.7440. Once short the target will likely be sub-0.7300.
EUR/GBP
Trading strategy: Short
Open: 0.8750
Target: 0.8630
Stop-loss: 0.8810
Recommended size: 1.88 mini lots per $10,000 in your account
Short analysis: The EUR/GBP pops its head above the daily cloud and 14-day exponential moving average, but the upward move was not continued today. We remain short.
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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