Hello, fellow traders,
The US dollar keeps growing in the second half of the week amid US - China decision to restart trade talks next month. As a result, the EURUSD pair has consolidated under the level 1.1000.
On Tuesday Donald Trump administration accused China of not changing its "unfair" trade practices. In addition, at the news conference president Trump said he’s not looking for a partial deal, he’s looking for the big deal.
As for the pound, its value remains volatile, in large part due to uncertainty over Brexit. British politicians call on Boris Johnson to resign after Supreme Court ruled PM’s suspension of parliament unlawful. As a result, the GBPUSD pair is approaching the level 1.2300.
On Thursday, while trading, consider the following news:
- 13:30 CEST - data on US GDP;
- 14:30 CEST- Mario Draghi's speech;
- 14:45 CEST - Mark Carney will comment on the British economy state and the Bank of England credit policy;
- 15:00 CEST - data on pending home sales in the US housing market.
GBPUSD is located within the support zone; expecting signal to enter the market to generate
The pound keeps dropping, and the chart has already entered the support area 1.2342-1.2282. Signal for trading has not yet been generated. We are expecting:
- reversal to take place within the specified range. Reversal pattern/trading zone formation accompanied by consolidation beyond it, will provide grounds for buying with take- profit located at around 1.2520;
- extension accompanied by downward movement continuation. Fix profit when the level 1.2150 is reached.
AUDCAD - bullish reversal is expected
The chart of this currency pair has entered the support zone 0.8910-0.8956; trading scenario implies reversal and movement towards the level 0.9098. Place take-profit at this level.
Signal for buying will be W-shaped construction/trading zone formation followed by chart's consolidation beyond it.
Gold - priority is given to purchase trades
The chart didn't manage to consolidate above the level 1530, which was mentioned in our previous forecasts as one of two reference points for profit taking for long positions. As part of the current downward movement, dropping may continue; it is expected to stop in the range 1482-1493.
Look for reversal pattern within the support area and enter the market after confirmation is received. There's the potential for long positions; profit should be fixed at around 1525. Monitor chart's behavior near the round level 1500.
Coffee - reversal is expected to take place within the resistance area 103.33-104.87
Coffee price moved higher, yet, signal for buying has not been generated - no reversal constructions were formed within the support area, as mentioned in the previous forecast. Thus, we are not entering the market and waiting for growth to the resistance zone 103.33-104.87 to take place; we'll look for a signal for sales within this zone.
Place take-profit at the level 98.71 - this is the upper border of the support zone. Be sure to monitor chart's behavior around 100.00.
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