Hello, dear friends!
On Wednesday, there is almost no news of the first magnitude. The behavior of major currency pairs is determined by the same factors as before.
It seems that Brexit will not happen in October. The British Parliament is struggling to pass and is in no hurry to approve the deal, the terms of which were previously discussed by Boris Johnson and EU representatives. However, the EU has not yet responded to Britain's request to extend the Brexit deadline, so some uncertainty remains.
There was no strong fall in the pound against this background. At the time, the GBPUSD pair dropped to 1.2840, but then the drop slowed and in the afternoon the chart returned to the area of 1.2900.
Of other significant factors, we note the thaw in the relations between the United States and China. The dollar has received support and is trying to win back last week's losses.
On Wednesday, we will highlight only data on crude oil reserves in the United States (17:30 GMT) from important news. Also, at 17:00 GMT the statistics on consumer confidence in the eurozone are released, against the background of the news calm this news can affect the market. The rest of the day is expected to be calm.
According to EURUSD consider purchases from support in the region of 1,1000
We are counting on the corrective strengthening of the US dollar paired with the euro. The reversal of the EURUSD currency pair and the entry points to Buy are looking for in the range of 1.0991-1,1028. We consider the following options:
- any reversal pattern in this zone is the expansion of the lower boundary, the formation of an imbalance and the consolidation over it. In this case, we buy;
- Local termination is possible in this range, and you can sell with the expectation of updating recent lows when extending the upper boundary.
On the British I recommend to take a wait-and-see attitude
The Brexit news movement has broken old bands. While the formation of new, you need to wait for the end of this process and only then look for entry points.
The distance to the support zones exceeds 300 points, so they are not taken to work in the near future.
The Australian dollar is expected to weaken further in tandem with the American
The US dollar continues to strengthen in tandem with the Australian. We are interested in the behavior of the chart in the range of 0.6792-0.6810:
- the most likely scenario is the continuation of the downward movement. To do this, we are waiting for the formation of local dissolution in the range of 0.6792-0.6810 and in the false breakdown of its upper boundary open a short position with a take profit of 0.6740;
- we don't reset purchases either. If you get a confident reversal with confirmation, you can open long positions and use the Seif rule to break the deal.
By USDJPY in priority sales
We are seeing a weak downward movement. The chart has already returned to the range of 108.05-108.46 and at the time of the review is formed the entry point for sale. Consider 2 scenarios for sales:
- false breakdown of the upper boundary of the local trade 108.28-108.41;
- reversal M-shaped pattern at 108.41.
In both cases, the target is at 106.87.
By USDCAD more likely looks like growth
The scenario for the near future assumes the growth of the pair and entry into the range of 1.3206-1.3233. There are two options:
- reversal pattern - justified sales, signal aggressive, but you can reduce the lot and enter the market with a target in the region of 1.3070;
- formation of local dissolution and continued growth in the false breakdown of its lower boundary. Profit in this case is fixed at 1.3317.
On gold we are waiting for the formation of a bearish signal
At the time of the review, the schedule was out of the support area 1483-1473, and we expect the movement to last up to the range of 1507-1517. Here you should look for entry points for sale.
The short-term target is the nearest support at 1483.
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