My yesterday's expectations for USD/CAD have justified. The market was pressed by aggressive sales. The deputy head of the Bank of Canada noted that the regulator may discuss the question of the interest rate raising in the nearest future.
The technical pattern is ambiguous now. I don’t exclude a technical correction. The USD/CAD has formed a rather strong reversal formation – the divergence of the price and the MACD histogram.
I’ll buy, if the price fixes above the 1.3290 local resistance. Potential movement – to 1.3340.
I’ll sell the pair, if the price overcomes the 1.3255 mark. The goal for taking profit is 1.3225.
The Fed meeting is in the focus today. The market will be volatile. I decided not to open positions today. The situation is ambiguous at the moment. Most experts believe that the Fed will raise the interest rates. At the same time, the weak statistics on inflation and retail sales in the US has been published recently. The dollar has sharply weakened against the major world currencies. I plan to wait for comments of the Fed representatives and the FOMC economic forecasts.
I’ve identified the following key levels and will watch how the price reacts to them. I'll be back to trading tomorrow. Wish you all nice profits!
The Fed supported the US currency yesterday. The regulator has raised the key interest rate range by 25 basis points to 1.00-1.25%. The Central Bank noted positive changes in the economy and intends to start cutting assets on their balance. I expect the growth in demand for the US dollar in the nearest future.
My fav reversal formation has formed on USD/CAD. You can notice the divergence of the price and the MACD histogram on the chart below. I’ll buy, if the price fixes above the 1.3265 local resistance. Potential movement - to 1.3340.
Bears dominate on NZD/USD now. New Zealand's GDP growth was less than market expectations were in the first quarter of 2017. There also was an increase in demand for the US dollar. I plan to sell the pair, if the price fixes below 0.7210. The goal for taking profit is 0.7175.
Bulls dominate on USD/JPY. The Bank of Japan is going to adhere to a soft monetary policy. I plan to open deals in the current trend direction. I’ll buy the pair, if the price fixes above the 111.35 local resistance. The nearest goal for taking profit is 111.70.
The technical pattern on AUD/USD is ambiguous at the moment. I’ve defined the following key S&R levels: 0.7575 and 0.7630. I’ll open deals, if the price fixed above/below these marks. Potential entry points can appear during the next several days.
I’ll buy the pair to the 0.7675 mark, if the price fixes above the 0.7630 local resistance.
I’ll open shorts, if it fixes below 0.7575. Potential movement – to 0.7530.
The US currency has moved away from local extremes due to the publication of weak economic reports from the United States. The dollar index has closed the trading session in a negative zone.
An interesting technical pattern has appeared on GBP/USD. I expect a further correction. I plan to buy it, if the price fixes above 1.2810. Potential movement - to 1.2860. Potential entry points to the market may appear in several days.
EUR/USD is traded in a flat with a rather narrow range (1.1180-1.1205). The trading instrument is consolidating. I plan to open short-term speculative positions, if the price fixes above/below the range limits.
In case of breakdown of the 1.1205 mark, I’ll buy EUR/USD to the 1.1240 level.
I’ll sell it to 1.1145, if the price fixes below 1.1180.
Yesterday, the head of the Federal Reserve Bank of New York Dudley supported the demand for the American currency.
Sellers dominate at EUR/USD currently. I plan to open deals in the current trend direction. I’ll open shorts, if the price fixes below the 1.1140 key support. The goal for taking profit is the 1.1100 round level.
An interesting pattern appeared on GBP/JPY. The bearish sentiment is predominating now. I plan to sell it, if the price fixes below the 141.40 local support. Potential movement - to 140.75-139.85. I will use a trailing stop for this position.
There is a correction on AUD/USD now. I expect the future fall of the quotes. I’ll sell (with a trailing stop), if the price fixes below the 0.7550 local support. The nearest goal for taking profit is 0.7520-0.7500.
Buyers had strength on USD/CAD yesterday. An Ascending Triangle has emerged on the chart and it signalizes about the current trend continuation. The price has overcome the high of this figure. I’ll buy, if the pair fixes above the 1.3300 round level. The goal for taking profit is 1.3340.
The US dollar moved away from local extremes yesterday. EUR USD is traded near the 1.1175 key resistance. I expect a downward trend, and I’ll sell it, if the price fixes below the 1.1160 local support. Potential movement - to the 1.1120-1.1130 demand zone. This will be a short-term speculative deal.
The technical pattern on GBP/USD is ambiguous now. Bearish Engulfing PA pattern has appeared on the H1 chart. I’m waiting for a downward trend and will sell the pair after the price overcomes and retests the 1.2650 support level. Potential movement – to 1.2600.
The pound remains under pressure amid growing political tensions in the UK. GBP/USD is dominated by sales now. I plan opening short positions, if the price fixes below the 1.2700 round level. The goal for taking profit is 1.2660. The currency may reach 1.2600 in the medium term. I’ll use the trailing stop for this position.
The US Department of Commerce published a weak statistics on orders for durable goods yesterday. At the same time, the dollar index (#DX) ended the trading session in the positive zone. Investors expect that the head of the Federal Reserve will confirm his position on the monetary policy at today's speech.
So, USD/CAD is consolidating now. The currency is traded in a fairly narrow range. I’ve defined the following key levels:
Support – 1.3240
I’ll sell the pair, if the price fixes below 1.3240. Potential movement - to 1.3210-1.3200.
I’ll open longs, if the quotes overcome 1.3260 mark. Target movement - to 1.3300.
The 1.1175-1.1210 key trading range has formed on EUR/USD. Today's speeches of the Central Bank chairmen may serve as a driver for the further alignment of forces on the pair. I’ll look for the entry points to the market after the price fixes above/below the range limits.
I’ll buy after the breakthrough and retest of the 1.1210 resistance level. Target movement - to 1.1260.
I’ll sell, if the price overcomes the 1.1175 mark. Target movement - to 1.1140-1.1120.
These transactions can last for several days.