Thursday, 31 January 2019

Trading signals

Posted by FortFS at 12:33 Labels: Crypto

The most important and interesting points of Wednesday session for FOREX market is that traders received a solid confirmation of USD dollar weakness. Amid strategicla news FX markets managed to break through strong technical levels and moved the price into new ranges. This primarily means that USD dollar weakness was designed and we have to keep it in mind in our trading decisions.

EUR/USD

News background allowed the traders brake through 1.1430 resistance on the move and develop the surge up to strategical level 1.1515. if 1.1430 mark was of a tactical nature than this new area has a strategical importance for entire market. It is this level that divides two long-lived phase of EUR/USD market. The market has approached the area of overbought conditions and the move higher without correction seems impossible. But in the market it is nothing impossible and if bulls manage to fix above 1.1500 today it will be a big psychological victory. Tactical support is located around 1.1475-1.1465. In general we believe that the global change in market expectation is able to send quotes higher at least to 1.1575-1.1600. We look for interesting and safe entry-points to join the market movement.

Trading recommendation – longs in the area of the first resistance 1.1465-1.1475

GBP/USD

It is interesting enough that USD dollar weakness was ignored by GBP/USD market. It is not a big surprise given gains that GBP displayed last week. On Monday GBP/USD has approached a strong level of resistance 1.3140 but Brexit uncertainty is still in the market spotlight. However the closest support 1.3060 proves to be firm and keeps the market above. Today we expect a large amounts of GB data that can easily increase volatility. But technically no signs so far that market is ready to sell GBP.

Trading recommendations – careful longs in 1.3085-1.3060 area

Gold

The precious metal keeps on rising in price amid stronger weakness of USD dollar. Yesterday traders focused on FOMC press-conference and once they heard the confirmation of their expectations they rushed to buy the gold more and more. On this news the gold has broken through local highs around 1321. We mentioned that the entire area (1315-1325) is a some kind of market vicious resistance zone. Despite the current growth it is somewhat dangerous to go long on these levels. The market is locally overbought and any time we can see the profit fixation and local pullback. However if the market can display two four-hours candles close above 1325 we can believe it is a sign for more growth. After yesterday gains the closest support is located around 1315 and lower 1307.

Trading recommendations- longs in area 1310-1307 after market pullbacks

USD dollar index

Our expectations of the year start have finally come true. Back to that time we expected a massive USD dollar decline and yesterday USD dollar index dropped to four month lows and tested area 94.80-94.85. It is quite interesting that by this decline the market broke through 23.6% Fibo level. The next Fibo expansion (38.2%) is located around the 94.10 points. This might be the middle term target for USD dollar index. However we can expect a of correction in USD dollar as FX markets have come upon news strong technical levels. Not to forget thta negative news on US-China trade talks can significantly support USD. We will look into the developments of this strategical market.

Trading recommendations- look for sell entries as the market pullback

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