Good afternoon, dear friends,
On Tuesday, the EURUSD currency pair drop has somewhat slowed down. The GBPUSD pair continues dropping and is already testing the level of 1.2400. In the medium term, the future of the dollar depends on the Fed and its interest rate decision.
A week ago, there was no doubt that the rate would be cut by 25 points. The situation has changed due to recent positive statistics on retail sales and improved consumer sentiment index. Another factor is relative progress achieved in the US-China trade war issue.
As for the EURUSD pair, dropping has stopped, and the euro is trying to recover. According to today's statistics, the economic sentiment index in Germany is rather positive, which provides support to the European currency.
As for the pound, the reason for decline is the lack of clarity in the situation with Brexit. Yesterday, Luxembourg's PM has attacked Boris Johnson's approach to Brexit, calling the situation a "nightmare". Xavier Bettel said the British government had failed to put forward any serious proposals for a new deal.
Today UK Supreme Court begins hearing on parliament suspension - Court will weight arguments on whether PM Boris Johnson 'acted unlawfully' when he prorogued parliament. So, bear in mind that Court ruling may affect the British pound.
In the second half of the day pay attention to:
- 13:30 CEST- sales in the manufacturing sector of Canada;
- 14:15 CEST - industrial production volume in the US.
If there are no force majeure circumstances, strong movements are not expected until the Fed makes decision on the interest rate.
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NZDUSD - waiting for a reversal to take place within the support zone
The New Zealand dollar keeps losing ground in pair with the American dollar. The downward movement is expected to continue until the chart enters the support zone 0.6268-0.6304. Here, one can search for reversal patterns and enter the market as soon as confirmation is received.
Following the reversal, the most likely scenario is - reaching the area 0.6413-0.6450. Take-profit can be placed at its lower border.
EURNZD - yesterday's forecast remains valid
Monday's forecast is being executed. The pair continues to grow, but the movements are rather weak; resistance zone 1.7460-1.7570 has not yet been reached. We expect the growth to continue for about 50-60 points at least. Thereafter one may search for a reversal pattern and open trades for sale.
Targets for short positions have not changed, take-profit should be placed at 1.7108. When entering the market, stop-loss should be located beyond the reversal construction maximum.
NZDCAD - a reversal is expected to take place
The pair keeps dropping; the chart has already touched the upper border of the support area 0.8342-0.8375. If decline by another 20-40 points takes place, and a reversal pattern is formed, opening buy trades can be considered. We'll be looking for either a W-shape formation or a trading zone with consolidation above its upper border.
Most probably, the growth will continue up to the range 0.8469-0.8502. Place take-profit at the level 0.8469.
Corn - bearish pattern formation is almost completed
It can be seen on M15, that the chart has entered the resistance zone 371.42-376.50, and a reversal pattern has already been formed within it. Total minimum of this construction is located at 371.75; it has already been broken out. As soon as price rounding and retest of this level take place, one can open trades for sale.
We expect the downward movement to continue down to the support zone 351.75-357.20. Take-profit for sales should be located at 357.20.