Good afternoon, dear traders!
On Thursday, the dollar managed to update the highs in pairs with the euro and the pound which was followed by a similarly sharp retracement. The day was rich in news, so there was no lack of strong movements. From other news, let's emphasize the persisting tensions with regard to Brexit and the possibility of Teresa May's resignation.
Markets have responded rather calmly to the ECB meeting minutes’ release. Sharp movements have started following the release of statistics on unemployment benefits applications in the United States. They've decreased in number, and the dollar began to strengthen against this background.
The situation changed at 18:45 CET, when data on production activity index was issued showing not the best results. In addition, sales of new housing turned to be lower than expected, and buying the dollar has stopped. A reversal was expected to take place.
Two important news to consider on Friday:
13:30 - retail sales in England;
17:30 - durable goods orders in the United States.
Try to be at the computer at the time this data is published in order to secure open positions.
The average profit size by Horizon X strategy makes up 110 pips, wherein 7-8 deals out of 10 are closed with profits. The strategy is a set of clear rules to be used for entering the market. Follow the link below to get 3 video tutorials.
EURUSD - waiting for correction to take place and opening deals to buy
On Thursday, weekly minimum was set, but poor data received on new housing sales and business activity decline in the US have weakened the dollar. As a result, a sharp reversal has taken place followed by uncertainty zone 1,1116-1,1120 formation.
The growth was very sharp, but testing the level of 1.1120 hasn't taken place, that means conditions for entering the market weren't fulfilled. Place Buy Limit order at this mark with a stop at 1.1112, and take profit - at 1.1142.
USDJPY - opening deals to sell
During the day the Japanese yen was strengthening against the dollar. Bad statistics on the USA has caused a new wave of the American weakening. At the beginning of another downward movement, an uncertainty zone 109.94-110.00 was formed. It has already been broken through downwards, but its testing hasn't taken place yet.
It is recommended to sell from the resistance at 109.94 with stop placed at 110.04. Take profit for such deals should be located at the level of 109.65.
A moderate strengthening of the British pound is expected
In the first half of the day GBPUSD pair has tested support at 1.2600, but then the drop has stopped. The growth was accompanied by accumulation-distribution zone 1.2642-1.2646 formation. There was an attempt to break it through downwards, but the movement proved to be false.
Strong growth of the pair is not guaranteed, but at correction towards support at the level of 1.2646 one can consider deals to buy. In this case, place take profit at 1.2670 and stop - at 1.2638.
USDCAD - looking for opportunities to sell
On Thursday the US dollar has strengthened against the Canadian, but after the release of statistics on the United States at 19:00 CET retracement from the daily maximum has taken place. This movement was accompanied by the formation of uncertainty zone between the levels of 1,3489-1,3496.
The setup assumes short positions provided the growth of the pair to the lower border of the trading zone takes place. Stop for sales should be located at 1.3500; take profit - at imbalance level of 1.3472.
AUDUSD - priority is given to deals to buy
Similar to other couples, a sharp movement has taken place after statistics on the US had been released. At the beginning of a sharp growth trading zone was formed at 0.6869-0.6872, it was broken through upwards later on. Retracement of the required intensity hasn't taken place yet, therefore there was no signal to buy.
One should enter the market at testing the level of 0.6872 from above. Place stop no higher than 0.6865 and take profit - at 0.6893.
Yesterday's signals results:
- EURUSD - stop worked out;
- USDCAD - no signal received;
- AUDUSD, EURGBP - take profit worked out;
- GBPNZD - stop worked out; there was a chance to re-enter later on.
As for the strategy, it enables earning more than 100% per month at time costs of about half an hour a day. As soon as you master the rules, analyzing one tool will take just 5-7 minutes. To check out the training details and sign in the webinar follow the link below.