Greetings, dear traders!
On Wednesday, everyone's attention was focused on the Fed meeting and subsequent comments to be issued. Fed’s decision was to hold rates steady, which opens the door for a rate cut in the future. The dollar has strengthened against the euro and the British pound by the end of the day.
Let's note that during the day, the British succeeded in strengthening against the US dollar prior to the Fed's decision on interest rates was announced. Statistics on consumer prices in England proved to be quite good, and this provided support to the pound.
Safe haven currencies are traditionally in demand. Following the Fed's decision announcement the USDJPY pair is already testing the level of 108.00.
News to consider on Thursday:
- 13:30 - data on retail sales in England;
- 16:00 – decision on interest rates in the UK;
- 17:30 - production activity index according to the Federal Reserve Bank of Philadelphia;
- 01:00 - speech by the head of the Bank of England Mark Carney.
Pay special attention to pairs that include the British pound. Strong news will be issued in England during the day.
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USDCHF - it's recommended to open short positions from 0.9990
Weekly high' update was followed by a downward movement. Priority was given to short positions after a sharp breakthrough of the imbalance at 0.9990 has taken place. Signal to enter the market hasn't been received yet, but pending Sell Limit order can be placed at this level.
Stop level is the maximum of the week + several pips of margin; place it at 1.0017. Profit fixing zones are calculated according to the Safe rule; they are located at the marks of 0,9964 and 0,9910.
USDCHF - downward movement is expected after the imbalance is tested
Construction looks the same as on the previous currency pair. Global imbalance is located at 0.6866, and the scenario including short positions implies testing it from below. The breakout was quite sharp, there’s a high probability that the signal will work out.
Place Sell Limit order at 0.6866 with a safety stop at 0.6894. Targets are located at 0.6838 and 0.6783.
EURNZD - testing of support and growth are expected
Here we’ve got a reversal construction. Support segment for this instrument has appeared at the end of the previous week, today global imbalance was formed within the segment.
The level of 1.7157 was broken through upwards which was followed by a quick retest. If you managed to enter the market at that moment, then half of the volume should have already been closed with a profit. As soon as retest of the mark 1.7157 takes place, one can open deals to buy with targets at 1.7195 and 1.7271. Stop is placed under the whole pattern minimum - at the mark of 1.7119.
CHFJPY - bullish positions are considered
Most of the conditions for entering the market are fulfilled. Global imbalance was formed at the level of 108,500. Earlier chart has twice tested the lows in the area of 108,200-108,300, but the support managed to resist.
Long positions should be opened when price gets back to the global imbalance. Stop should be placed at 108.189, target levels are located at 108.812 and 109.434.
EURCHF - expecting the downtrend to continue
An aggressive deal with moderate targets is possible here. An imbalance was received at the level of 1.1184, and its breakthrough downwards has already taken place. The distance of about 20 pips in the direction of the breakthrough has already been covered, so we recommend placing Sell Limit order at a price of 1.1184. If there's no possibility to monitor chart's behavior during the day, the signal can be missed.
Stop for a deal is located at 1.1213, and the targets - at 1.1155 and 1.1097.
Wednesday signals summary:
- GBPJPY - the first take profit has worked out, waiting for the second take profit to work out;
- NZDCHF, AUDCHF - signal working out has started;
- EURNZD, AUDJPY - no signal.