Good afternoon, dear traders!
In the first part of the day the dollar was shifting trends relative to other major currencies. As for the EURUSD pair, the daily high was updated; the pound continues losing ground relative to the American. There was no significant news released on Tuesday; yet the market responds fussily to any rumors related to trade war between the United States and China.
Earlier, Trump has stated that trade compromise with Beijing is possible in the future, but the US are not ready to it so far. He has also drawn attention to trade imbalance with Japan and called on Shinzo Abe to do away with it. Against the background of uncertainty in relations between America and China safe haven currencies are traditionally in demand.
A day earlier EURUSD pair has updated the maximum of 1.5 weeks due to the results of the European parliament elections. On Tuesday, the situation got back to its normal course - the euro continued losing ground against the dollar. According to statistics, consumer confidence index in Germany dropped to a 2-year low, which put additional pressure on the EURUSD pair.
The news of the second part of the day deserving your attention:
- 18:00 - the S&P / CS Composite-20 housing cost index in the USA will be released;
- 19:00 - consumer confidence index in the USA.
It's recommended to search for entry points by Horizon X. You won't be limited to one currency pair and will be able to work on any timeframe. The results will depend on trading style used; the most conservative tactics will enable you to earn more than 40% of the deposit per month. To get first video tutorials on the strategy follow the link below.
USDJPY - considering buying from the level of 109.12
Here, we are interested in the trading zone of 109.07-109.12; it has been formed in mid-May, and today signal to buy might be received. We'll enter the market only if touching the level 109.12 takes place; place Buy Limit order here if there's no possibility to monitor the market.
Place stop for long positions at 109.03. The setup assumes that the chart will move to at least the level of 109.42; place take profit at this imbalance level.
USDCAD - signal to sell was received
Today the key area is considered to be 1.3464-1.3467. Priority is given to short positions; signal to enter was received after touching the border at level of 1.3464 has taken place. One can make deals right at the moment, while the chart is still located close to resistance.
Stop is located at 1.3471, we haven't reached it so far. Take Profit is located at the local imbalance level 1.3439.
CADJPY - support of May 23 is working out
As for this pair, signal to buy has been received, support at 81.15-81.1 built on the minimum of May 23 has started to work out. The level is quite strong, this is the third attempt to approach it, and the probability that the bull signal will work out is rather high.
We'll place stop with a margin of 4 pips beyond the lower border of the support area (the level of 81.11). When reaching the 81.37 mark, fix profit manually or place take profit here.
CADCHF - only buying is considered
Testing of trading zone upper border 0.7408-0.7418 formed at the end of March is expected today. Place pending Buy Order at 0.7418; movement to the level of 0.7445 is expected, so take profit should be located there.
Place stop-loss for this position no higher than the level of 0.7404.
EURGBP - waiting for resistance to work out
On Tuesday, our attention was focused on trading zone in the range of 0.8858-0.8861. This resistance was formed a few months ago, and today the chart might test it, which will provide the signal to sell.
Start trading only when the chart touches the level of 0.8858 from below. Stop should be located no lower than the level of 0.8865, and take profit should be placed on the support 0.8834.
The month is coming to an end. If you are taking part in our demo account competition, it's time to redouble your efforts and come out on top. Those who didn't manage to sign up for the competition in May, would be able to do this at the beginning of June. Follow the tournament announcements on our website.
Horizon X performs well for both conservative trading and tournament mode, where the fastest possible overclocking is needed. On average, 7-8 out of 10 deals are closed by take profit, and the drawdown makes up no more than 5%.
To check out the training details and sign in the webinar follow the link below.