Good morning, dear friends!
The Fed willingness to cut rates in order to compensate for the growth slowdown caused the drop of the American relative to major currencies. Confirmation by the Fed of the fact that the rate cut will take place has led to the sales of the US dollar.
Thursday's statistics have also affected the dollar. According to the Fed of Philadelphia, recession in manufacturing activity is observed, so the US currency keeps dropping. EURUSD pair made an attempt to consolidate above 1.1300, USDJPY - the chart is approaching the round level of 107.00, and GBPUSD is testing the resistance at 1.2700.
On Friday pay attention to:
- 13:00 - business activity index in the Eurozone;
- 17:30 - retail sales in Canada;
- 19:00 - sales in the US real estate secondary market.
EURJPY - growth is expected by the end of the week
Buying can be performed at market price. A buy signal was received after touching the level of 121.50 from above had taken place. The chart has already moved below this mark, so one can open deals at the market price.
Stop for long positions is located at 121.06. We'll use partial profit fixing at the levels of 121.93 and 122.81.
GBPAUD - selling from the current price level
Here the chart has already tested the global imbalance. One should open deals for sale from the level of 1.8338 with the volume reduced by 4 times. Support segment is missing, so risks are higher than usual.
Place stop no lower than the mark of 1.8424; take profits' position is determined by the Safe rule. They are located at 1.8251 and 1.8078.
GBPJPY - waiting for the entry point for sales
Here, the global imbalance was formed last week; we are waiting for its working out to take place. The level of 137.78 is likely to become a key level; place pending Sell order here. Given the distance to the imbalance, this scenario can work out next week.
Stop should be located at 138.35, take profits - at 137.21 and 136.06.
Daimler AG stocks - considering buying only
German automotive group stocks rose by more than $2 this week. Global imbalance at 47.83 was broken through. Bullish scenario implies correction from the highs reached including the mandatory imbalance testing. Pending Buy order can be placed at 47.83.
The targets are located at 49.08 and 51.57. Place stop at 46.58.
Ford stocks - price reduction is expected
The chart has twice attempted to consolidate above the level of $10.00 per share, but both attempts were unsuccessful. As a result, global imbalance at 10.05 has been formed, and the price has already broken it through downwards. As soon as price rounding takes place, at this level's retest one can open deals for sale.
Stop loss should be placed beyond the highs - at the level of 10.20, and profit should be fixed at 9.89 and 9.58.
- USDCHF, AUDCHF, EURCHF - there was no imbalance retest, there's no deal;
- EURNZD - the first take profit has worked out by the Safe;
- CHFJPY - 4-5 pips were missing for imbalance retest to take place; later both take profits were reached.
At the end of the week entry points’ analysis will be issued, and I'd recommend to look it through. You can compare it to your results to figure out which entry points were taken into work, and which ones were missed.
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