Greetings, fellow traders!

The start of the week was full of news which resulted in high volatility. The dollar withdrew from the highs, but recovered by the end of the day. The market is heavily influenced by the trade war between the US and China, Brexit and a dispute between the European Commission and the Italian government.

  • Now let’s cover some key events of Monday:
  • the investors are reluctant to buy dollars until the leaders of China and the US meet at G20 summit. We don’t expect substantial growth of the American currency against other majors;
  • approval of Brexit plan by heads of European states, supported the pound;
  • euro grew after Matteo Salvini, deputy Italian Prime Minister, stated that the Italian government may review the budget deficit towards decreasing it. A possible compromise between the European Commission and Italy boosted euro.

Concerning Tuesday, the following news is important:

  • 8:30 a.m. EST – FRS Representative Richard Clarida speaks;
  • 9 a.m. EST – Housing Prices in the US;
  • 11 a.m. EST – Head of ECB Ives Mersch speaks.

 

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There is no top level news in the calendar and the day may end without any surprises. All we need is to watch for Horizon X trading signals and enter the market.

Downside pullback conditions formed on GBPUSD

The pair failed to trend above 1.2850 and continue towards 1.2900. On Tuesday we will wait for the test of the 1.2794-1.2796 zone and a swing – this will provide trading conditions. Apart from swing pattern a swing level must also form, preferably inside the swing zone. After the price trends above it, you can enter a long trade and place the target at 1.2861.

Kiwi is about to grow

The support is working on NZDUSD. The swing pattern has already formed; we can see it in the picture below. There is also a swing level at 0.6775.

We need to wait till the chart moves below the swing zone at 0.6780-0.6782 and touches the 0.6775 level. The stop should be below the recent low and the TP should be at 0.6815.

Bearish pattern has nearly formed on AUDCAD

Such Horizon pattern provides good entries. All elements have formed – we have a swing zone 0.9579-0.9582, there was a momentum move, a break and a trend below it. The chart should touch the level at 0.9579 and we can enter the trade after that. You can place your short trade target at 0.9562.

Wait for a short entry on AUDJPY

On this instrument the situation is similar to AUDCAD. A swing zone formed at 82.26-82.28 after the chart trended above 82.30. Then the price broke it on a momentum move, pulled back, tested it and trended below.

If the chart touches the 82.26 level (zone’s lower margin) , we will get trade confirmation. The short trade target is at 82.06. The profit is not large, but highly probable.

EURAUD takes a pause before another wave of growth

The pattern similar to two previous instruments, forms on this chart. The swing zone at 1.5661-1.5664 was broken by a momentum move. Then the price trended above and set a new high at 1.5684 – the pattern is strong.

After the chart drops to the 1.5664 mark and we can enter the long trade immediately after. The stop should be below the swing zone and the TP should be at 1.5684. The expected profit can be around 20 pips on 4-digit.

I recommend reading the weekly review of entries here. For several weeks we have been receiving at least two signals a day and had a lot of trading opportunities.

We advise to sign up for Horizon X training and you won’t confuse any terms. It is never too late to learn, especially now when we provide free version of the training course. You will get free video lessons to your e-mail via the link below.

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That is all for Tuesday analysis. Trade and earn, financial instruments provide plenty of opportunities for trading.