Good afternoon, dear friends!
In the absence of important news, the dollar remains close to last week's highs. On Wednesday Fed meeting will take place, where the issue of rates cut in the US will finally be clarified. Until this date, the attitude towards the US currency will be cautious.
US-China trade war has greatly affected the world economics’ growth perspectives. Cutting rates is being discussed not only in the US, but also in Europe. The upcoming Fed meeting promises to become a marker indicating perspectives for the dollar in the medium term run.
There are no special reasons for being optimistic in regards to the trade war. The recent agreement with Mexico has only somewhat stabilized the situation; Chinese direction remains the main trouble so far.
There's little for news to report on Monday. Yet, the speech by Mario Draghi at 22:00 is worth your attention. In the light of the Fed’s meeting scheduled for Wednesday, it would be interesting to know his opinion on measures to stimulate the Eurozone economy.
All the below forecasts are provided based on Horizon X strategy. To get this information for free follow the link below. It's main advantages to point out are: little time spent on market analysis (1-1.5 hours a day), high win rate and profits from 30-50% per month, even when trading cautiously.
CHFJPY - still waiting for a sell signal
The imbalance we are interested in is located at 109.44. This entry point was mentioned in last week forecasts, but the sell signal hasn't been received yet. The situation hasn't really changed, so we keep waiting for retest from below the level of 109.44 to take place. Place Sell Limit order at this point.
Stop should be placed at 109.79 - beyond the reversal pattern maximum. According to the Safe rule, take profit levels are located at 109.08 and 108.36.
EURNZD - opening short positions from the level of 1.7238
Unlike the CHFJPY pair, a support segment can be observed here; it was formed on June 12th. It's false breakout has taken place followed by imbalance formation at 1.7238 (outside the support). It was broken through downwards; one should open deals to sell as soon as its retest takes place.
Stop for such a scenario is placed at 1.7281, and take profits - at 1.7195 and 1.7110.
EURJPY - expecting a bullish pattern to work out
We are expecting the global imbalance, formed on June 3, to work out in the next few days. Previously, there were attempts to perform a retest, after the breakout upwards had taken place, but the downward movement wasn't deep enough. When touching the level of 121.10 takes place, one should open deals to buy.
Stop is located below the movement minimum, at which an imbalance has been formed - at the mark of 120.73. Profit is fixed in parts - when reaching the levels of 121.47 and 122.21.
For the pair of the Australian and New Zealand dollars an aggressive entry point for sales is being formed
The week was opened with a GAP downwards, which was immediately covered. Friday's maximum was tested, followed by a downward movement. An imbalance of 105.65 was formed; Monday scenario implies its testing from below. The breakdown has already taken place, so one can place Sell Limit orders at 105.65.
Place stop at 1,0591, take profits - at 1.0539 and 1.0488.
EURGBP - expecting the second take profit for short positions to work out
Sell signal for this pair was received last week. Short positions didn't work out for 100%. The first half of the volume has been closed by the Safe, and the residue (provided stop wasn't moved to breakeven) is still in the market.
One can re-open deals to sell from the level of 0.8908 with stop placed at 0.8935. The first target is located at 0.8882, the second one - at 0.8831.
All the entry points mentioned within the forecast are considered aggressive. Make sure to adjust the lot.