Good day, dear friends!
There were no major changes in the financial markets on Wednesday. The dollar was traded in quite a narrow range and managed to maintain the previously achieved advantage in pair with the euro. Even negative statistics on non-agricultural sector employment had a little impact on it.
ADP statistics was released on Wednesday, and it showed a decrease in the number of workers employed in non-agricultural sector. On the other hand, in January this index was revised upwards, up to 300 thousand, which offset the current negative data.
Among other events, let's point out the Bank of Canada decision not to change the interest rate, which led to the drop of the Canadian in pair with the dollar. The British pound continues to behave uncertainly with respect to Brexit - in pair with the dollar it stayed within a narrow range for the whole day.
News to be considered while working on Thursday:
- 15:00 - data on GDP in the EU;
- 17:45 - the ECB will discuss interest rate increase;
- 18:30 - number of unemployment benefits applications in the United States;
- 18:30 - the ECB press conference.
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Now, let's move on to entry points' search.
GBPUSD - selling from 1.3158 level
Working with a trading zone within 1,3158-1,3170 range. Waiting for bearish signal; it is worth selling when the chart touches 1.3158 level (the lower limit of the trading zone). Stop on this deal should be located above 1.3173; don't forget about spread and leave a margin of several points.
At the moment, the signal to enter the market has already been received. Profit should be fixed when support is reached at 1.3132. Profit expected exceeds the stop.
EURJPY - we expect local imbalance to work out; we'll buy from the current level
The chart felt support, and the level of local imbalance was formed at 126.39. The reversal pattern was formed, price rounding took place above the imbalance, and it was worth entering the market when touching the support at 126,39. Stop for buying is located by 3-4 pips lower than 126.31.
If you didn't manage to enter the market while the imbalance was being tested, you can still do it now. While analytics is still being prepared, the chart is testing the stop-loss zone, so one can enter the market with a very favorable TP to SL ratio. Take profit for long positions is located at 126.52.
EURGBP - opening short positions from 0.8613 level
The trading zone is formed at a rollback from the daily maximum within 0.8613-0.8616 area. This area was broken through pretty fast, and the chart has fixed below 0.8600 level. Nevertheless, bearish signal is still relevant, so we are waiting for the chart to return to resistance at 0.8613 and are opening short positions. As an option, Sell Limit order can be placed at this level.
We expect resistance testing to be followed by fall continuation at least till 0.8601 level, where we will place the take profit. Place stop out of the daily maximum + margin of several points.
AUDNZD - all conditions for buying are met
For this pair the local imbalance level has worked out at 1.0369. A W-shaped reversal pattern was formed, the imbalance was broken through bottom to top, and one could buy at a price of 1.0369 on the reverse movement while retest was taking place. Stop should be placed no higher than 1.0361.
Since the chart still didn't move too far from the entry point, it is possible to buy from current levels based on continued growth up to 1.0381. Keep Safe rule in mind, at such an uncertain signal working out it helps to quickly protect part of the profits.
AUDJPY - a deal to buy can be opened
For the pair Australian-Japanese yen the level of imbalance is formed at 78.44 mark, and, after a signal to buy was confidently formed, the chart has not yet reached TP at 78,54. The signal was received after the break through of the imbalance upwards and testing 78.44 from above took place.
Stop was located below 78.37. If the Safe rule was used, a third of the deal should have already been closed with profit.
Wednesday signals summary:
- EURGBP, GBPJPY - stop loss worked out;
- EURCAD, CADCHF - forecast worked out;
- GBPNZD - limited to Safe rule working out.
As you can see, the signals work out pretty well even on M1. It is not easy to work on this timeframe as the movements are sometimes sharp and too fast, but Horizon X performance is not bad here as well. On M5-M15 one can trade in a more relaxed mode.
You can learn more about Horizon usage options within the training course framework. Get a general idea of the trading strategy using the link below absolutely for free.
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The analytics for today is completed. Any questions and suggestions are more than welcome within the comments. All the best and good luck in trading!