Good morning, fellow traders,

On Wednesday, the situation in the markets looked quite optimistic. It was primarily due to the fact, that there’s some progress regarding Brexit issue and US trade relations with China.

Against this background, a decrease in the demand for safe haven assets is observed. The Swiss franc and Japanese yen keep dropping in price in pairs with the American dollar.

On Wednesday, the euro was losing ground in pair with the dollar. There’s no significant news to be mentioned, yet, investors prefer to play it safe in anticipation of the ECB meeting scheduled for Thursday where further measures to stimulate the European economy will be discussed.

The fact is that the ECB's ability to stimulate the economy is quite limited. This is true not for ECB only, but also for central banks having negative interest rates and low government bonds yield.

As for the pound, the GBPUSD pair is trading in the area 1.2350 so far. On Wednesday, it was announced that Scottish judges ruled PM's suspension of parliament was unlawful, but that did not affect the rates.

While trading in the middle of the week, consider the following:

  • 13:30 CEST - producer price index in the US;
  • 15:30 CEST - data on crude oil reserves in the United States.

EURNZD - the pair has broken out support zone

The chart is located below the lower border of the support area 1.7200-1.7279. Two possible scenarios are considered:

  • downward movement continuation up to a significant psychological level of 1.7000. Opening short positions only when testing the level 1.7200 takes place;
  • reversal and growth. To enter the market, one should wait for return to the zone 1.7200-1.7279, formation of the ​​trading area within the zone and consolidation above its upper border to take place. Growth potential is limited by the level 1.7509.

NZDJPY - resistance has been broken out, growth continuation is possible

On Wednesday, the chart attempted to consolidate beyond the upper border of the area 68.60-69.18. Price rounding has already taken place, but the price has returned to the resistance zone. In case the bullish pattern is formed, it will be possible to open trades to buy.

The second scenario assumes further downward movement including interim trading zone formation. When breaking out its lower border and consolidate below it take place, one can open trades to sell with a target at 66.86.

Bitcoin - both bullish and bearish scenarios are considered

The BTCUSD chart is located between the support zone 9315-9633 and the resistance 10606-10942. Trading is recommended only when one of the areas is reached:

  • buying is considered when reversal construction in the range 9315-9633 is formed; take- profit can be placed at 10606;
  • selling will be relevant when the chart enters the zone 10606-10942, and a reversal takes place; place take-profit at 9633. Stop-loss in both cases should be placed beyond the extremum of the reversal construction.

Wheat - sales are in priority

The chart has entered the resistance zone 475.00-481.00 on an impulsive movement, but failed to consolidate over there. A small ​​trading area has already been formed within this range; it has been broken out, and consolidation behind its lower border has taken place. Conditions for performing sales are fulfilled.

The main target for short positions is located at 456.47. Interim levels for profit taking are - 467.30 and 462.30. The likelihood of growth continuation is rather low. It will be considered only in case of further movement in the range of 475.00-481.00 and a failure to break out support level. If this scenario is executed, place take-profit at 487.50.

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