Hello everyone!

Despite important news in the economic calendar, no significant moves occurred in the market yesterday. GBPUSD is not rushing to break the lows, in spite of poor Manufacturing statistics. The market ignored today’s statistics due to yesterday plunge of the pound.

The situation was similar on EURUSD. No important news came out, and good employment statistics in the USA (released on Friday) was countered by no growth of wages. As a result, the dollar didn’t receive any support.

Today the following news is worth paying attention to:           

  • Speech of M. Carney, Bank of England Governor. He may comment on Monday events, and it may have a market impact. He is speaking at 6:35 p.m. MSK;
  • at 3 p.m. MSK Yves Mersch, ECB member speaks. Usually the market ignores such comments unless they concern changes of interest rate;
  • 3:30 p.m. MSK – Core PPI in the USA is released.

Now let’s analyse the markets using Horizon X TS.

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Expect a pullback to the support on EURUSD

Yesterday an entry appeared on this pair in full compliance with our predictions, it could yield 30-35 pips. Today we keep our bullish bias intact, but shift the support zone. We change it using Tuesday price movement, today the support is at 1.1690-1.1722.

For Wednesday, we consider a pullback to yesterday lows and formation of a swing pattern here. The nearest target is at 1.1724.

Yesterday scenario still in play for GBPUSD

On Tuesday, the pound didn’t drop against the dollar, nor it grew to the resistance zone. This yesterday movement implies that our forecast is still active – we expect the bounce from resistance at 1.3325-1.3362. The take-profit should be at 1.3299.

Remember: you need a swing pattern to form inside the resistance zone, a false break may occur. Only when the price trends under the swing level, we can open a short position. You can learn more about how a technical entry appears from our free Horizon TS training videos.

Looking for long trades on USDJPY

Our bullish forecast for yesterday was justified, but no correction took place. No entry appeared.

We shift the support zone using Thursday price movement. The chart encountered problems at 111.03-111.12, this zone will be important for today.

To get an entry, you must wait until the chart enters this range, possibly with a small false break. After a W-pattern forms, the price breaks the SL and trends above, we can place our long TP at 111.20.

Don’t forget the rule of Safe. This technique allows you to move to no-loss quickly and use the trailing stop on the remaining trade and stop worrying about it – you won’t lose anything. To understand the trading mechanism better, I recommend reading the review of the last week’s entries.

The mid-week is likely to be calm, considering the economic calendar. However, Monday events proved that force-majeure can come out of the blue, and traders cannot relax.

We got one perfect entry yesterday. Today 1-2 more entries can appear. Our goal is to monitor chart movements and seize the trading opportunities. If 3 pairs is not enough for you, then I advise to study our basic Horizon TS. You can download the complete training course via the link below.

Get 10 free Horizon video lessons here