Greetings, dear friends!
On Monday, the markets are still affected by the news of the previous week. There's some optimism with respect to the trade war situation, and the dollar has somewhat improved its position against this background. The growth of the American was restrained due to anxiety connected to the probability of interest rate decrease.
At the end of the previous week under the threat of tariffs’ increase on Mexican imports to the United States an agreement on countering illegal migration was signed by the two countries. This event became a reason for some optimism and supported the dollar. Trade issue with China remains unresolved so far.
As for the possible reduction of US Federal Reserve rates, FOMC statistics indirectly speaks in favor of this fact. The number of jobs created in non-farm sector proved to be significantly less than expected.
Bad statistics on the UK was released on Monday. Against the background of negative data on manufacturing industry, the British has dropped below support at 1.2700.
Take into account in the second half of the day:
- 17:15 and 17:30 - new housing construction volume and building permits issued in Canada;
- 18:00 - GDP estimate in the UK according to NIESR;
- 19:00 - vacancies number in the labor market.
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EURUSD - waiting for reversal pattern formation to be completed
For this pair a signal to sell from the level of 1.1301 might be received soon. Global imbalance has been formed within the support segment, which increases the entry point value. Breakout downwards has already taken place, for sales one needs to wait for imbalance retest from below to take place.
When selling from the level of 1.1301 place stop at 1.1352 and targets - at levels of 1.1251 and 1.1150. The signal is not bad, so we are entering with the usual lot.
NZDUSD - only bearish setup is considered
The situation here is similar to EURUSD. Global imbalance at 0.6650 has been formed just below the lower border of the support segment, still the signal is not bad. Its retest hasn't taken place so far, this is the only thing necessary to enter the market.
Place stop beyond the reversal pattern - at the level of 0.6685. The first target is located at 0.6616, the rest of the volume should be closed at 0.6548.
GBPNZD - buying after the downward correction takes place
Here we've got both: the support segment and global imbalance at the level of 0.9128, that has already been broken through upwards; we've already moved for about 100 pips away from it. We’ll buy from the level of 0,9128 as soon as touching it from above takes place.
If this scenario works out, place stop beyond the minimum of the entire reversal pattern - at 1.9079. Targets for a long position are determined by the Safe rule and are located at levels of 1.9178 and 1.9277.
The Canadian and Japanese yen - opening deals for sale
The imbalance for this pair is located at 0.9227. The deal is likely to be aggressive, support segment is not observed within this construction.
When touching the imbalance at 0.9227 takes place, open deals for sale with stop located at 0.8266. Take profit for short positions should be placed at 81.88 and 81.10. Make sure to reduce the working volume by 4 times - this is a necessary measure to be taken due to signal aggressiveness.
NZDCAD – buying from current levels
Similar to the previous currency pair: there’s an imbalance, but there's no support segment prior to it. The level of 0.8793 was broken through upwards earlier, and today its retest has taken place. At the moment, the chart is located under imbalance, but the signal to buy is still relevant - the reversal pattern Low has not been "rewritten".
One can buy from current levels with targets located at 0.8797 and 0.8831. Stop should be placed below the reversal pattern Low - at the level of 0.8762.
If the chart drops lower, recalculate the targets’ levels positioning by yourself according to the Safe rule.