Greetings, dear friends!
On Thursday, trading relations between the US and the number of countries are still remaining in focus. Now Mexico has come under attack. The situation is aggravated due to the recent Trump statement that the first round of tariffs would begin on June 10 at 5% on all goods imported if the illegal migration crisis is not alleviated through effective actions taken by Mexico.
On Thursday the ECB should make decision on monetary policy. There's a possibility that the trade war consequences would level everything achieved due to monetary stimulation in the past. No surprising decisions are expected from the ECB. Traders are more interested in whether the ECB will strengthen Eurozone economy support or will just take up a waiting position.
As for the dollar, it has somewhat retreated from the Lows in pairs with the euro, pound and Japanese yen due to the meeting on trade issues held between the United States and Mexico.
News to consider on Thursday:
- 16:45 - ECB interest rate decision. At the same hour commentaries on monetary policy will be released;
- 17:30 - ECB press conference;
- 19:00 - business activity index in Canada.
All this predictions is based on our trading experience and Horizon X trading sysytem. You can see more information in our free practical course. You can find 3 Price Action patterns, using that will enable you to increase profitability up to 362%!
EURUSD - opening deals to sell from the level of 1.1252
Bearish forecast made for this pair a few days ago didn't work out. Chart's current movement allows specifying global imbalance location which is the mark of 1.1252 at the moment. We'll start trading as soon as this level is retested from below; the breakout on a sharp movement has already taken place.
Stop for the deal should be placed at 1.1310, and the targets are located at 1.1193 and 1.1076.
NZDUSD - signal to sell is received
There was an attempt to move upwards, an asymmetrical reversal pattern was received; its minimum is a global imbalance. The chart has broken through the level of 0.6630 downwards and has already tested it; one can open deals for sale at the current price.
Since we are opening 2 deals of equal volume, we’ll place take profits at different levels - 0.6591 and 0.6514. Stop should be located no lower the mark of 0.6670.
EURGBP - deals to sell are opened, waiting for the target level to be reached
Here a clear supporting segment can be observed, the movements, when approaching it, were sharp, which increases its value. Further on the zone was broken through, a reversal pattern was formed and tested from below. This allowed opening deals to sell at a price of 0.8876.
Stop for this position was placed at 0.8905. The first target in the area of 0.8848 has already been achieved, and the movement in a profitable direction continues. We are waiting for the second take profit located at 0.8790 to work out.
AUDNZD - priority is given to bullish positions
So far, the chart has only reached the support segment and keeps moving in this area. The exact global imbalance location is still unknown, so one needs to wait for its formation, breakout upwards, testing to take place, and only then buying will become possible.
The picture below shows indicative targets only. The first take-profit (1.0560) is the impulse middle, the second one (1.0613) - is the level of imbalance. Check out stop's and both take-profits' location after clear reversal pattern is formed.
EURJPY - opening long positions from 121.10
There's a support segment here, but it's not perfect. In particular, after the zone specified in the picture has been formed, the price has covered less than 50 pips. On can buy as soon as level 121.10 retest takes place, but at a reduced volume.
Targets for long positions are located at 121.47 and 122.21. Place stop-loss at the level of 120.73 - under the whole construction' minimum.
There are no ideal entry points for today, but you should know to accept what the market offers. If there's a signal, but it doesn't comply with the configuration for 100%, it still can be traded. Yet, in order to lower risks the working volume should be reduced.