Greeting everyone!

Main events are happening in the middle of the week, that is why we’ve seen absence of volatility in the market. Major pair traded in narrow ranges, important levels are still intact.

On Tuesday, we should pay attention to:

  • Mario Draghi’s speech. His comment on Eurozone monetary policy is released at 11 a.m. MSK. Last week ensured us that ECB comments could cause over-the-top volatility;
  • 3:30 p.m. MSK. Statistics on building permits and laid foundations in the USA. It is not the top news, but it can support the dollar.

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Two-way trading is possible on EURUSD

Short trades are a priority on GBPUSD, but don’t abandon long trades just yet

Bearing in mind the last week’s movement, we should consider the current rise a price correction. It means our bias should be short, but an intraday northern move may occur, so we may consider both scenarios:

  • a short entry may appear after the 1.3220 support break and the chart trending below it;
  • the second bearish trade is possible after a false break of 1.3260 resistance. If the chart won’t trend above it, we can sell and our TP should be at 1.3220;
  • Scenario 3 and 4 include the bounce from 1.3220 support, the difference is in targets. Your TP should be at 1.3260 or 1.3295; you can also apply the rule of Safe and take profit in parts.

On Tuesday consider short trades on USDJPY

Only bearish scenarios should be taken into account today. The pair is below important resistances, and recent movement can’t switch our bias to long trades.

For today:                                            

  • The first entry may appear after a false break of 110.65 resistance. After a pullback below it, we can enter the short trade with TP at 110.30;
  • Entries 2 and 3 are identical and imply a bounce after a false break of the 110.75 resistance. If a swing pattern forms here, it will provide an excellent short entry. The only difference is in potential profit – you can place your TP at 110.30 or 110.65.

We had a very profitable previous week: using Horizon X strategy, we received 10 entries and all of them worked. You can read the detailed review here.

No one can guarantee the same number of entries this week, but it is not the case. In the long run, we receive more than 1 entry every day, analyzing only 3-4 instruments. If you expand your portfolio to 5-10 pairs, you will get more entries.

Even if you trade perfect entries only, your trading will still be profitable. Our traders explain that in details at Horizon X training course. To make your trading even more profitable, we advise to study the basic Horizon first. You can download all the materials via the link below.

Get 10 free Horizon video lessons here

That is all for today. Volatility is likely to increase in the middle of the week, so keep an eye on that and don’t miss trade entries.