Thursday, 19 July 2018

FX TS, 19/07/18

Posted by FortFS at 13:25 Labels: trading signals

EUR / USD

USD dollar is trading at 10-month highs. Yesterday, weaker US data on the real estate market led to a local USD dollar adjustment - the players partially fixed the profit. Today, the growth of the dollar continues. On Wednesday, EUR / USD traded volatile, - the bulls tried to hold the line around 1.1640 mark. Today, the pressure remains, in the early European trading session, the pair is moving lower and trading at 1.1610.

At higher timeframes, contracting triangular consolidation is formed. Shorts are becoming a very dangerous business, as well as longs in this market conditions. Besides we expect the market volatility to rise before the weekend. A short-term action plan is to stay out of the market.

Trading recommendations - out of the market

GBP / USD

Yesterday, the pair marked the early low at around 1.3000, followed by a local pullback on the background of profit taking. Today, the decline continues and price have already been firmly entrenched in this zone. Negative sentiment persists-however shorts are dangerous at these levels because the market is oversold. We recommend to wait for a local upward pullback to open short positions. Before the weekend, we expect that bulls will fix profits on the dollar and a kind of pullback will follow in entire foreign exchange market. The closest resistance level is in the area of 1.3080-1.3090.

Trading recommendations - shorts in the zone 1.3080-1.3090

USD / JPY

The growth of the pair continues-this market demonstrates a steady upward rally. Yesterday, a new local maximum was identified in zone 113.14, which is the local resistance now. Operative, more significant resistance as well as the purpose of the current rally is located in zone 113.40. With more local pullbacks ahead, we can open new longs, but the proximity of 113.40 level must be taken into consideration, once reached this will activates profit-taking and local decline.

Trading recommendations - longs with target 113.40

AUD / USD

This instrument is traded in a narrow consolidation zone, limited by 0.7335-0.7430 / 0.7446. We expect that the range dynamics will continue, and in this situation, it is wise to trade inside the channel. Short-term longs from the bottom of the range with the target of 0.7400 are interesting.

Trade recommendations- longs in the zone 0.7330

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