Thursday, 24 January 2019
Trading signals
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trading signals
If you are thinking about the main currency markets this week and suddenly realize that we haven’t seen anything yet - the first part of the week out to be inactive as if the market is experiencing calm before the storm - we agree with you only if we don’t talk about the pound . This week, the pound is doing its job and living its life, with a 1.5% gain since Monday's opening, and this is amid the background of continuing uncertainty with Brexit. Today we will analyze the meeting of the ECB and the subsequent reaction of EUR / USD. Today, a calm week may end abruptly, as volatility is already beginning to grow.
EUR / USD
On Wednesday, the European currency got a chance for a weak corrective pullback, primarily due to the US dollar weakness. However, the strength and duration of this pullback illustrates the entire situation in this market. EUR / USD rose to the first resistance level around 1.1395 and immediately turned down as the quotes returned to the area from which this correctional growth began. Thus, the market situation has not changed, as well as all our thoughts on this market about which we wrote during the entire week. Today we are waiting for the market reaction to the meeting of the European regulator and remain out of the market and expecting increased in volatility.
Trading recommendations - out of the market
GBP / USD
On Wednesday, the British pound continued to grow. The pair marked new highs in the 1.3090 area. In the area of this mark, the rally of the British currency is likely to end. This is an area of strong resistance where the market meets the 200th MA. Actual strong support is located in the 1.3000 area. However, we need to keep in mind that longs at these levels are quite dangerous.
Trading recommendations – cautious longs around 1.3000
Gold
On Wednesday’s trading session, gold could not overcome the first tactical resistance in the area of 1285. This can mean only one thing - bulls do not have the strength to build on success and seize the initiative and now what is more important that the first line of defense around $1277 is under threat. Now the market is trading within a wider channel 1277-1295. The next support zone is located in the area of $ 1266 - there goes 23.6% Fibonacci extension. We are watching the development of the situation and close the previously open longs.
Trading recommendations - out of the market
Dollar index
Yesterday, USD dollar index pulled back from the mark of 96 points, although today the market has recovered back to this area. Thus, the market situation has not changed. We look forward to further developments.
Trading recommendations - shorts from 96
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