Hello, dear friends,

The dollar recovered on Wednesday after falling when a formal impeachment inquiry began against U.S. President Donald Trump, although analysts say this situation will increase pressure on the U.S. currency.

Moreover, consumer confidence dropped by the most in 9 months in September as trade tensions escalated.

President Trump recently hailed his “very successful trade battle” with China, and said he did not want the US to be “servants to the Chinese”. He said Tuesday “he will not accept a “bad deal” in trade talks with China” as the world’s two largest economies renew their push to end an escalating trade war.

The pound tested the level 1.2500, but the fact that Supreme Court has ruled the suspension of parliament unlawful led to no further growth. On Wednesday GBPUSD is trading below 1.2450.

When trading on Wednesday pay attention to:

  • 15:00 CEST - new housing sales in the US;
  • 15:30 CEST - data on crude oil reserves in the US.

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Swiss franc is located within the support area

The USDCHF pair has reached the support area ​​0.9853-0.9879, signals for trading have not yet been generated. Two possible options are be considered:

  • formation of a reversal model will be completed - when consolidation beyond its total maximum takes place, one can start buying; there's a possibility of further movement up to 0.9956;
  • extension will be formed, and this will allow to open trades for sale with take profit located at 0.9800.

The EURJPY pair is trading close to a strong support

The currency pair has reached the support zone 117.52-118.02; there are two possible scenarios to be considered:

  • the chart will move downwards and  will form a reversal construction within the support area. As soon as confirmation is received, open trades to buy with take profit located at 119.50;
  • when extension is formed within the support zone, one can open trades for sale. In this case, we'll expect the chart to move up to the level 116.50.

Copper - reaction to support zone is expected

Here, both buying and selling are considered. There was an attempt to consolidate under the support area 2.6115-2.5885, but then return to the mentioned range took place.

Two types of signals are possible:

  • reversal pattern - trades for buying  can be closed at around 2.6790;
  • sales on extension - in this case, place take-profit at the level of 2.5250.

Coffee - considering bullish positions only

At the moment, the chart is on its way to the support zone 94.92-96.91; the scenario involves reversal model formation within this area.

After standard reversal pattern is formed, and consolidation above its maximum takes place, movement to at least the level of 102.87 is expected. Place take-profit here; interim level for fixing profit is located at around 100.00.