Hello, dear friends!
On Monday tense situation between the USA and Iran was in focus. According to Mike Pompeo new sanctions will be imposed on Iran, moreover US plans to build a coalition to fight its military threat.
Against this background, big players don't rush to buy dollars. At the beginning of the week, the dollar is trading at 3-month lows.
There were no statistics worth mentioning on Monday. The only news to note - a decrease in production activity, which had no strong impact on the markets. Statistics speak up for the likelihood of rate cut in July, which traders have already taken into consideration.
News to pay attention to on Tuesday:
- 19:00 - consumer confidence index in the USA; statistics on new home sales in the USA;
- 22:00 - speech by the head of the US Fed Jerome Powell.
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EURCAD - waiting for the buy signal
Reversal pattern on this instrument was formed at the end of the previous week. On Friday global imbalance at the mark of 1.4926 was broken through on a sharp movement. The current scenario implies downward correction and testing this level from above; when this condition is fulfilled, one can open purchase deals.
Stop in this case is located at 1.4885, the targets are at the marks of 1.4993 and 1.5129.
GBPAUD - looking for an opportunity to buy
Here, buys signal for reversal pattern has already been received in the middle of the previous week. We are interested in global imbalance at 1.8277, which one should open purchase deals from. Touching this level has already taken place.
Support segment is present, but before global imbalance was formed, it has already been tested. Therefore, the signal to enter the market is considered aggressive, and the standard volume should be reduced by 4 times.
Place stop below the Low of the reversal construction - at the level of 1.8213. Take profit for the first half of the volume is located at 1.8340 and 1.8468.
GBPCHF - opening deals for sale from the level of 1.2548
The situation is similar to the one on the previous pairs. Last week the chart moved out of the trading zone; there is a global imbalance at 1.2548. This resistance hasn't been tested so far, but when approaching it from below takes place, one can open deals for sale.
Place stop for such positions at 1.2595. Profit is fixed at the levels of 1.2503 and 1.2415.
To reach global imbalance the chart needs to cover the distance of about 170 pips, so there's a possibility that the signal' working out will take a few days.
Expecting the New Zealander to get strengthened against the Japanese yen
Last week the pair reached multi-month low; since that moment a moderate recovery of the New Zealand dollar has started. Global imbalance at the level of 70.62 was formed last Friday; it was broken through upwards, and a new wave of the New Zealander strengthening has begun. On Monday there was a slight retracement, but it wasn't deep enough to perform entering the market.
We'll open purchase deals only after touching the level of 70.62 from above takes place. In this case, stop loss must be placed at 0.7040. Take profits should be located at 0,7084 and 0,7127.
As for the signals of Monday, there's no 100% working out so far:
- CADCHF - stop was received;
- GBPNZD - the first goal worked out by the Safe rule;
- USDCAD and EURJPY - no conditions for entering the market.