Hello, dear friends!
On Tuesday, statements by Mario Draghi and Donald Trump became the main sources of volatility. Draghi dropped a hint that the ECB is ready to take any measures to stimulate the EU economy, and Trump considered this to be a signal for the Fed to cut rates. As a result, there was a surge in volatility observed in the market.
Other strong news released more or less met experts' expectations. The market didn't react to the Eurozone consumer price index publication as well as to data on building permits issued in the United States.
To sum up Tuesday events, the dollar has strengthened against major currencies. This situation increases the likelihood of rates cut in July. On Tuesday and Wednesday Fed meetings are taking place, but the chances interest rates will be cut in June are very low.
News to take into account on Wednesday:
- 13:30 - statistics on consumer prices in England;
- 17:30 - consumer prices in Canada;
- 19:00 - speech by the head of the ECB Mario Draghi;
23:00, 23:30 - the FOMC protoc
GBPJPY - buy signal is getting formed
All reversal elements are present - trading zone, an impulsive exit out its lower border and a sharp return to the area above it. The second spurt overlaps the first one, which indicates the priority of purchases.
Long positions should be opened from an aggressive imbalance at 135.81. Stop Order is located at 135.31, take profit position is determined by the Safe rule. Take profits will be placed at 136.31 and 137.32.
NZDCHF - opening deals to buy after testing the level of 0.6492 takes place
The situation here repeats the one on GBPJPY pair. Sharp bullish impulse was followed by a small correction, but it's not enough to enter. The imbalance is located at the level of 0.6492; only after its retest from above takes place the condition for purchases will be fulfilled.
In such a situation stop should be placed below the minimum of the whole construction - at 0.6468. Profit should be fixed at 0.6516 and 0.6565.
EURNZD - looking for an opportunity to sell
On Tuesday, the pair updated the weekly high and then dropped down sharply by more than 100 pips. Global imbalance was formed at 1.7261. At the time the review has being prepared, the chart has moved quite far from this level, but the bearish scenario is still relevant.
One can sell only when retest of imbalance from below takes place. Stop for the deal is located above the weekly high - at 1.7310, and take profits - at 1.7212 and 1.7115.
AUDJPY - correction and the downward movement resumption are expected
Weekly minimum' update was followed by a reversal, and the pair has reached the level of 74.50 on an impulsive movement. Global imbalance is located at 74.16. We recommend placing Buy Limit order at this level. Quite good movements on AUDJPY pair may possibly take place at night, and if you are waiting for a signal by the market, there's a risk to miss it.
Stop for long positions is located at 73.86. Target levels - at 74.45 and 75.04.
AUDCHF - buying if trading zone retest takes place
There's a slight holdback between two impulsive movements. Trading zone indicates conflict of interest between large players. We are going to work with this area. Buying will be performed after level of 68.45 retest takes place. Support segment is very weak, so the lot should be reduced by 4 times.
Stop for such a deal is located at 68.05, zones of fixing profit are the marks of 0.6885 and 0.6966.
Tuesday signals working out:
- XAUUSD - the first target has worked out by the Safe;
- XAGUSD - the deal is in the market;
- Gas - the deal is open, stop level has been tested;
- WTI oil and copper - imbalance retest wasn’t performed. The forecast has worked out, but entry point wasn't received.
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