EUR/USD In Range-Bound Trading Ahead Of Fed And ECB Meetings
MyFXspot research | Jun 12, 2018 07:48AM ET
The main pairs were range-bound ahead of decisive meetings of both central banks this week. Te Fed is widely expected to raise its target rate by another 25bp on Wednesday. The ECB is getting closer to winding down its QE program. We expect a hint in this regard this week.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Long
Open: 1.1785
Target: 1.2015
Stop-loss: 1.1680
Recommended size: 1.90 mini lots per $10,000 in your account
Short analysis: The EUR/USD bulls remain in control, the scope grows for initial gains to the 1.1910 key Fibo level, 38.2% retrace of the 1.2555 to 1.1511 (2018) fall. Friday's candlestick line had a long tail, reinforcing the rejection of the downside.
GBP/USD
Trading strategy: Long
Open: 1.3410
Target: 1.3675
Stop-loss: 1.3280
Recommended size: 1.15 mini lots per $10,000 in your account
Short analysis: GBP/USD mired in range between 10-day MA (1.3350) and 30-DMA (1.3441). Slew of UK data this week and UK parliament Brexit votes may skew pair to test 10-day MA. On the other hand, 14-day exponential moving average is getting closer to the 7-day ema, a positive cross here would be an important bullish signal.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: USD/JPY bulls rebound to focus once again on the 200-day MA, currently at 110.19, a break and daily close above which will unmask 110.62, 76.4% retrace of the 111.39 to 108.12 (May) fall. We think that current signals are not strong enough to open a new trade here.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The USD/CAD is testing the psychological barrier of 1.3000 as NAFTA trade tensions linger. In our opinion the volatility may be elevated and the direction is hard to predict. We stand aside.
AUD/USD
Trading strategy: Long
Open: 0.7555
Target: 0.7800
Stop-loss: 0.7555 (raised from 0.7420)
Recommended size: 1.48 mini lots per $10,000 in your account
Short analysis: The rally off May's low remains intact and long lower wick on Friday's and Monday's candles are good signals for our long position.
Get The News You Want
EUR/GBP
Trading strategy: Long
Open: 0.8780
Target: 0.8960
Stop-loss: 0.8780 (raised from 0.8690)
Recommended size: 1.22 mini lots per $10,000 in your account
Short analysis: The long remains and it's in better shape. The pair gets support from the 100-day SMA and RSIs are rising. A break and close above the 200-day SMA (0.8836) and May's high (0.8843) should will be a big step towards our target. Our stop has been raised to cost.
Trading ideas by MyFXspot.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.