Good afternoon, dear friends!
The British pound is still in focus. A day earlier parliament members rejected Theresa May and the European Union’s deal for the second time, which caused strong growth of the British. There were other important news as well, so the day come out to be full of events.
Since voting on Tuesday was unsuccessful, on Wednesday parliament members will discuss the possibility of a tough Brexit. According to the rumors, the majority is inclined to think that the possibility of British exit with no deal will be rejected completely. I.e. March 29 will not become the boundary date of this process.
Besides, a pretty good data on industrial production in the Eurozone was published on Wednesday, which along with not the very best statistics of the US enabled the euro to recover from daily lows. As for America, despite the durable goods orders growth, the increase of producers' prices is rather slow. Combined with slower inflation it suggests that the Fed will not rush to raise the rates.
The important news for Thursday:
- 17:30 - the number of unemployment benefits applications submitted in the United States. Statistics on US imports / exports prices will be published;
- 17:30 - housing prices index in Canada;
- 19:00 - data on new housing sales in America.
Take into account that on Thursday the British Parliament will vote on the extension of England's exit from the EU. It may cause the pound's increased volatility.
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Moving on to signals search
EURUSD - considering buying from 1.1288
The attempt of the EURUSD pair to consolidate below the 1.1300 level was unsuccessful, and by the end of Wednesday the pair was traded close to this mark. At a rollback from the daily minimum we've received a trading zone at 1.1282-1.1288 and are only waiting for touching the 1.1288 level. Immediately afterwards one can buy with the target at 1.1315. Stop is to be taken out of the lower limit of the trading zone + 4 points of margin.
The chart was already approaching the profit fixing zone but it hadn't touch the support before. So we set up Buy Limit at 1.1288 and wait for events to develop.
GBPUSD - local imbalance level is working out
A bearish signal on this pair is already received. At touching the imbalance level 1.3216 from below a short position is already opened with the stop placed out of High at 1.3230.
There was an attempt to test the stop level but then a reversal took place, and the chart is moving in the direction of take profit at 1.3187. The Safe rule has already worked out, so the stop is moved to breakeven, and the third of the profit is closed.
Regarding the Australian - we expect the downward movement to continue
AUDUSD pair - testing of resistance achieved the day before was observed on Wednesday. The growth slowed down by the end of the day, and at a rollback from the daily maximum a trading zone 0.7084-0.7087 was formed.
The price rounding is almost formed; by the time this material was being prepared the chart has already approached the 0.7084 level which we will open short positions from. The stop is to be placed at 0.7093 or higher, and take profit should be located no higher than the support 0.7071.
USDJPY - long positions can be opened right now
The Japanese yen has strengthened against the US dollar by the end of the day. The chart has approached the daily minimum at 111.14, but the downward movement slowed down in this area, and on correction the uncertainty zone 111.20-111.23 was formed.
At the moment, all the conditions for entering the market have already been fulfilled. At touching the 111.23 level deals to buy could be opened with SL placed not higher than 111.15. Take profit is located at 111.33.
Since the chart is still testing the stops area, one can buy now as well. The SL to TR ratio is very profitable.
AUDCAD - waiting for reversal bearish pattern working out
Growth attempt in American session ended in stopping at 0.9444, from this mark on a decrease has followed. Local imbalance level was received on the downward movement at around 0.9439. Its breakthrough from below has already taken place, so we are giving priority to selling.
The only unfulfilled condition for entering the market is touching 0.9439 level from below. Place Sell Limit order here not to miss the signal. Profit is to be fixed at 0.9425, and SL is to be taken out of the reversal pattern maximum.
An attempt to retest the LIL has already taken place, but the chart didn't reach the resistance. I recommend placing a pending order to sell and waiting for events to develop.
Regarding yesterday's signals results:
- USDJPY, AUDNZD - stop worked out;
- USDCAD - part of profit was fixed by the Safe rule;
- NZDCHF - take profit was reached;
- EURAUD - entry points into the market were not received.
At the end of today's review I'd like to remind that you may work not only by the market but also use pending orders. Students often complain that they miss entry points, although they see them on the chart beforehand.
Don’t be afraid to place limit and stop orders. Horizon X is a very accurate strategy, even on M1-M5 it's possible to predict the chart motion scope with an error of only a few points. Learn more about other features of this TS using the link below.
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Today’s review is completed; the entry points’ potential is not bad, try to get them all into work. Best regards and see you soon!