Wednesday, 21 November 2018
FOREX TRADING SIGNALS
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trading signals
Global financial markets aren't looking all that stable at the moment and this could make for an even more volatile period into the end of the week, as US traders heading out for the Thanksgiving holiday later today. Wednesday will provide a bunch of data features US durable goods, initial jobless claims, existing home sales and Michigan sentiment.
EUR / USD
European currency market is traded very technically for this week and what is more important- according to the basic expectations of the traders. So far, everything is going on as expected by most analysts, but it is precisely this fact that can alert an attentive observer. As a rule, the market never does the expected and obvious things, but if it does, it is always its own special and unexpected way. What does this mean for us? It is the fact that widely expected Euro growth and the new test 1.1460 may not happen in the near future. In a Monday review, we indicated that the main support for the current situation is located in area 1.1360-1.1355, and so the market rolled back to this zone. However, on Tuesday session, the conditions were formed for the formation of a side range trade within 1.1335-1.1470.
First, on Tuesday, the downward American dollar impulse finally ended, the dollar index fell to the area of strong support, a round level 96 points, and from there it moved to growth. Today, DX is trading around 96.50. There is reason to believe that the dollar index will spend some time in the range 96 - 96.90. Just to remind, that today is the last day of active trading on the global markets this week, since tomorrow the Americans are leaving for the weekend, and next week will be somewhat restrained, as the strategic G20 summit in Argentina begins on November 30 and the markets will be awaiting this event on lwer volumes.
Secondly, the technical picture of the market hints that the bulls do not have the strength for a real assault on the level of $ 1.1470, which means that we can expect a range trade, with possible short-term decline to 1.1300 area, which by the way will represent a good opportunity for longs. As a result, so far market move above 1.1465-1.1470 still looks problematic. Longs can be opened in the area around 1.1370 and lower if touched 1.1300.
Trading recommendations - longs in the zone 1.1370 and lower 1.1300.
GBP / USD
Yesterday, weak bulls attacks were repulsed at a secondary level around 1.270, summarizing the four-day assault on this zone that ended in a victory for the sellers. This is a self-spoke signal. Buyers are completely demoralized. The nearest support is the zone 1.2775, if it does not stand, then the decline will continue to monthly lows in the area of 1.2715.
Trading Recommendation - shorts
AUD / USD
The correction of the Australian dollar continued to the area 0.7210, where the market found support zone, after which it moved to growth. It is interesting that the downward impulse was formed in 0.7290 area exactly where we expected. The closest resistance of the market is located around 0.7265, this is the zone where the current upward impulse of the market goes. Strategic support is located in the 0.7200 zone, in the case of a rollback we can consider longs. In another case, we still recommend staying out of the market and observing the development of the situation.
Trading recommendations - out of the market
Gold
For three days, gold is trading in a narrow range around 1219-1225. Yesterday's dollar growth did not put pressure on the gold market, which in itself is a positive signal for the precious metal. Looks like the market is consolidating and accumulating volume for the assault of resistance $1225. However, taking into account the close and long American weekend, we do not expect that a successful assault on this area of 1225 will take place this week.
Trading recommendations –longs when market pulls back to $ 1215- $ 1216
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