EUR/USD: Long At 1.1600, Target 1.1780
MyFXspot research | Jun 04, 2018 10:47AM ET
The euro edged higher today, supported by a drop in Italian bond yields after a revived coalition deal between two anti-establishment parties pulled the country back from snap elections.
Better-than-expected U.S. employment data on Friday kept the dollar afloat, even as the European Union, Canada and Mexico are expected to retaliate to the import tariffs on steel and aluminum announced by President Donald Trump.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Long
Open: 1.1600
Target: 1.1780
Stop-loss: 1.1600 (raised from 1.1510)
Recommended size: 1.67 mini lots per $10,000 in your account
Short analysis: Recent rallies fail to hold above 1.1700 and the 10-day SMA. A doji candle suggests indecision though. We have raised the stop-loss to the entry point. Our trade is risk free now.
GBP/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The GBP/USD went up in American session on Friday and the pair is testing 10-day MA (1.3337) now. We think that stronger recovery signals are needed to open a long position here.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The USD/JPY makes recovery moves but will likely be stymied by the 30-DMA, now at 109.56. Fourteen-day momentum remains negative, reinforcing the overall bearish market structure. We will be looking to sell this pair again in anticipation for bearish resumption through key Fibos at 107.98 and 107.17, 50% and 61.8% retrace of the 104.56 to 111.39 (March to May) rise.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The USD/CAD remains firm though off recent high. Resistance levels are: 1.3009 Friday's high and 1.3024 the rising upper 21-d Bolli. More firm resistance is at 1.3047 May 29's recent trend high. The risk is very high here given uncertainty over trade issues.
AUD/USD
Trading strategy: Long
Open: 0.7555
Target: 0.7800
Stop-loss: 0.7420
Recommended size: 1.48 mini lots per $10,000 in your account
Short analysis: The pair fails to hold below the 10 & 21-day SMAs and a long lower wick appears on Friday's candle. An upward move is a more likely scenario here.
EUR/GBP
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Trading strategy: Long
Open: 0.8780
Target: 0.8960
Stop-loss: 0.8690
Recommended size: 1.22 mini lots per $10,000 in your account
Short analysis: The long remains but it is struggling. The sharp reversal after setting a new short-term high has the pair back below the 100 & 10-DSMAs and daily RSI biased down after diverging on the high.
Trading ideas by MyFXspot.com
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