Hello my dear friends!
Tuesday’s main event was the Brexit vote in the British parliament. The British pound is in turmoil, and there's a high volatility on its pair with the American dollar. Besides, let's note that inflation in the United States is less than it was expected, which in theory could unleash the Fed for raising interest rates.
Earlier, Theresa May was already defeated in the Parliament when she failed to push the previous version of the agreement. Now let's keep our fingers crossed for her being able to solve the Irish border problem. Also, May reported the relevant issues to have already been discussed with the EU representatives. The question is whether this will be enough to convince skeptics to vote for Brexit.
As for Wednesday, news to be taken into consideration in the middle of the week:
- 15:00 - industrial production volume in the Eurozone;
- 17:30 - UK budget forecast;
- 17:30 - data on durable goods orders in the United States. Producer price index will be published as well.
In case of the Brexit vote failure on Tuesday, a vote on hard version of Brexit will take place on Wednesday including addressing the appeal to the EU with a request to extend the effect of Art. 50 and prolong the period of the UK exit from the European Union. Very high volatility of the British is expected.
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Moving on to signals search for Wednesday.
USDJPY – there’s a potential for short positions
There was a rapid development with respect to this pair. Pattern #3 for sale has been formed, there is a price rounding below the broken through accumulation-distribution zone, and one could sell on touching 111.20 level. Stop was placed over the upper limit of the zone (111.23) + 4 points of margin. Take profit for this position should be placed at 111.11.
Unfortunately, the chart didn't move in the direction of TP, and at the moment stop for selling USDJPY has already worked out. SL wasn't big - about 7-8 points.
USDCAD - buying from current price levels
Here, conditions for buying were fulfilled after the chart rollback from the daily minimum at 1.3369. This mark was tested by the pair twice followed by an uncertainty zone 1.3372-1.3375 formation at rebound from support. Upon its breaking through, a rounding above the zone was formed, and when touching 1.3375 level from above one could buy with a stop at 1.3368 or slightly lower.
Take profit is placed at 1.3388. So far, TP hasn't been reached, but Safe rule has already worked out, so the part of the profit is closed and the loss on USDJPY is covered.
NZDCHF - conditions for sales are existing
The pair has found resistance at 0.6920 level, and on its downward movement a bearish pattern #3 was received. The trading zone is located between the marks of 0,6917-0,6919. A confident breakthrough of this zone and its retest from below have already taken place, one can sell when placing stop out by at least 4 points above the recent maximum.
Place take profit at 0.6908 and don't forget about partial profit fixation according to the Safe rule.
EURAUD - buying from support level 1.5907
A sharp growth was observed on this chart after the daily low has been tested, which allows giving priority to long positions. The trading zone is quite compact, it was formed in the range of 1.5903-1.5907.
So far, the pattern is not fully formed, we are waiting for price rounding to complete and for touching 1.5907level. It’s worth placing Buy Limit order with a take profit of 1.5932 here. SL should be no higher than 1.5899.
AUDNZD - conditions for buying are fulfilled.
For the pair Australian-New Zealander trading zone 1,0317-1,0320 was formed on the upward movement. After the breakthrough and return of chart to the zone from above conditions for buying with stop at 1.0313 or slightly lower were fulfilled. We will fix profit when the recent maximum at 1.0331 is reached.
For now there is no movement in the profitable direction; moreover, stop level has already been tested. If you haven't entered the market before, you can buy now with a stop of 5-7 points.
Yesterday's signals working out:
- EURUSD - safe rule working out;
- GBPUSD - very strong movements were expected from this pair; having not removed pending order one could make money from buying;
- USDCAD - just 1 point was left to reach resistance; there is no signal for selling;
- EURGBP, CADCHF - stop has worked out.
Horizon X offers many more options for entering the market, but just some of them become a part of our analytics. To anyone interested in learning the strategy for 100% it's highly recommended to find out the TS details following the link below. It's absolutely free and will not take too much of your time.
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Today's review of currency pairs’ movement is completed. I recommend that you not get limited to the tools mentioned within our reviews, but learn to look for trading points independently. Will be glad to learn about your results from the comments. I do hope our reviews help you trade profitably.
I'm leaving you for a while. See you soon and good luck in trading.