Despite top-tier news yesterday, the day remained calm. In the afternoon, the dollar attempted to grow against euro and pound, but after poor statistics on jobless claims was published, it pulled back. Eventually, the day closed without momentum moves or entries.
Today we can highlight the following news:
- 2 p.m. MSK – Bank of England member John Cunliffe speaks. He’s responsible for monetary policy;
- 6 p.m. MSK – FRS report on monetary policy.
Both the news reports are not very significant, so there is a chance that Friday will close without market fluctuations.
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Bearish scenario in play on EURUSD
Yesterday was calm, no entries appeared. For Friday, we should rebuild the resistance zone using the nearest visible chart movement on July 11. The range is quite wide, we will be seeking short entry inside 1.1710-1.1758.
Our short target will be at 1.1688, but it all depends on where exactly the entry appears. It may be better to close half the trade here.
Maintaining bearish bias on GBPUSD
Nothing of interest occurred on this chart. We keep the resistance at 1.3325-1.3362 intact.
If the price reaches this zone, we can place our take-profit at the 1.3290 support. If the price doesn’t move towards the resistance, then you’d better abstain from trading this pair on Friday.
Expecting a descending correction on USDJPY
Yesterday the pair was growing without a pullback. The chart didn’t get to the support and no entry appeared. Our overall expectations for Friday are the same, but we shift the support level.
The local swing level is marked using Thursday movement – today it is at 111.91-112.00. Our long target is at 112.23, we can grab around 30 pips from this trade.
Seeking entry after the bounce from local swing level on Corn
The resistance was marked using July 11 movement. Due to a long candlewick on top, the resistance zone is wide and we will look for entries at 343.27-346.98.
We can take profit at 341.33. Be particularly cautious when entering the trade, calculate your profit/loss ratio. If the stop is larger than the profit, it’s better not to take the risk.
Bearish bias on Soybeans
The situation is similar to Corn. We have marked a significant local swing level on July 11. Today we expect the chart to approach and bounce from it.
To enter a short trade, we need a swing pattern to form after a false break or inside the resistance zone at 845.48-847.73. After the bounce is confirmed, we can place our short take-profit at 840.50.
The time is now to sell on RTS
At the moment RTS is at May highs, but the mid-term bias is bearish. In the next two months, we can expect the stock market to drop significantly.
We can highlight 2 key factors:
- Gradual folding of QE programme by ECB, meaning there’ll be less money;
- US is planning a large-scale placement of T-bonds, which will result in the outflow of capital from stock market.
It is likely to lead to the drop of US stock market. And traditionally, the developing markets (Russia included) follow with much heavier losses.
It is a good time to sell on RTS. By October it may reach 1050 or even 950, if the plunge is deep.
Today we publish our review of this week’s Horizon X entries. The results were quite good, though not plentiful. Read more in the coming review.
Today we decided to include more instruments into our analytical review. I advise to pay special attention to the stock trading recommendation - the trading pattern has begun to form, so if you aren’t confused by keeping your position open for a long period, you may have a look at RTS.
You can learn how we build support and resistance zone on these charts if you complete our free Horizon training course. It an excellent start for further training with our Forex Academy traders to master Horizon X strategy.
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