Greetings, fellow traders!

On Wednesday all attention was drawn to Brexit and the clash of its advocates and opponents. Some people spoke in favour of no deal with the European Commission and unilateral exit from EU.

The main argument of the opponents of the current agreement is the loop that allows to keep the UK hanging in the balance indefinitely – it is the Irish border dispute. If the agreement is adopted unchanged, then Irish border negotiations can go on forever, leaving Brexit non-finalised.

May scares her opponents that unilateral Brexit will significantly harm the British economy, but it is uncertain if the deal is going to be voted for on December 11. As a result, the pound rate fluctuates.

Among other events was the EC offer to increase the role of euro in international transactions. Although it isn’t mandatory, but demonstrates the potential of euro in the mid-term period.

On Thursday the following news should be considered:

  • 8:30 a.m. EDT – US Jobless Claims statistics is published;
  • 8:50 a.m. EDT – BoC Governor Stephen Poloz speaks;
  • 9:45 a.m. EDT – US PMI is released;
  • 10 a.m. EDT – statistics on Factory Orders in the USA.

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Today FRS Governor Jerome Powell will speak. His assessment of the American economy may influence the dollar.

Expect growth on EURUSD after a small pullback

We can enter the trade on this instrument after the chart moves down to 1.1335. It is the upper margin of the broken swing zone. Pattern #5 implies a retest of this zone.

Despite the fact that we look for entries on M1, the trade may yield 20-25 pips of profit.

AUDUSD – all attention on short trades

A simple Horizon X TS pattern formed on Aussie. The chart broke the support, trended below it and continued down.

The chart moved far from the 0.7288-0.7291 zone, but you should trade only after the price touches the lower margin. You can place the delayed Sell Limit order at 0.7288, your stop-loss should be above 0.7300. Place your take-profit 0.7271.

Bearish pattern triggered on NZDCAD

A swing pattern formed after the chart trended above 0.9250. At 9:41 a.m. EDT the swing ended and the price touched the lower margin of the 0.9241-0.9248. You should have entered the short trade at that moment.

The rule of Safe worked here, the chart covered about half the distance to the 0.9210 TP.

Enter the long trade right now on NZDJPY

A short-term break of the upper margin of the 78.09-78.12 swing zone occurred, but no perfect swing took place. NZDJPY pulled back under the swing zone.

As the pattern’s low remained intact, we can enter the long trade at the current price level and place the target at 78.21 and apply the rule of Safe here.

Maintain bearish bias on Sugar

A near-perfect pattern #5 formed on M1, the long trade target should be at 12.88. At the moment the price swung and touched the 12.76 level.

Right now the chart is inside the 12.72-12.76 zone, but the stop is still far and the pattern is likely to work.

Short summary of Wednesday trades:

  • Brent – the stop triggered. After the price touched the upper margin of the designated swing zone, the chart continued to move down and closed the trade after breaking the pattern low;
  • WT – the trade is still open;
  • Boeing – the rule of Safe worked;
  • BMW – the chart reached the TP, although the stop level was tested prior to that;
  • ITX – a non-standard development. The market opened with a gap and the trade opened at a much better price. The chart hasn’t reached the TP yet.

A small loss on Brent is nothing extraordinary. Any TS may fail. The loss was slightly over 30 pips and was covered by profit from other trades.

That is why Horizon X is a perfect choice – the stops trigger rarely and the trader comes out of a drawdown during the same trading day, sometimes a couple of hours after the stop triggers. You can learn more about this and other peculiarities at our training course. I recommend clicking the link below and getting free Horizon X video lessons.

Get free basic Horizon X training course here

Our Thursday analysis is finished. I wish you profitable trading and see you tomorrow.