EUR/USD Long In Solid Shape
MyFXspot research | Jul 08, 2018 08:11AM ET
The USD hit three-week lows on Friday after data showed the US economy created more jobs than expected in June, but a closely watched inflation gauge - wage growth - rose less than forecast and the unemployment rate increased.
As a result, expectations dimmed somewhat that the Federal Reserve would raise interest rates a fourth time this year. Our EUR/USD long looks good now.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Long
Open: 1.1700
Target: 1.1830
Stop-loss: 1.1635
Recommended size: 2.50 mini lots per $10,000 in your account
Short analysis: The long remains in solid shape. A new short-term high has been set, RSIs are biased up, the 61.8% Fib of 1.1853-1.1508 and daily cloud base have been pierced and the 10-day SMA is about to cross above the 21-Day SMA. The 1.1830 target looks set to be hit soon.
GBP/USD
Trading strategy: Long
Open: 1.3255
Target: 1.3415
Stop-loss: 1.3175
Recommended size: 1.88 mini lots per $10,000 in your account
Short analysis: The GBP/USD broke above 30-DMA resistance (1.3273). Further resistance is at 1.3315 the June 22 high. Bears need a close below 10-day MA (1.3196) to regain momentum, but in our opinion long trade is much better idea for now.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Important levels to the stagnating uptrend since March are the Kijun and 55-DMA at 109.93/88. A close below those props would increase downside risk. We stand aside for now.
USD/CAD
Trading strategy: Sell
Open: 1.3095
Target: -
Stop-loss: 1.3180
Recommended size: 2.31 mini lots per $10,000 in your account
Short analysis: The USD/CAD resumes downtrend as USD sold off broadly post-non-farm payrolls. Chances of a Bank of Canada interest rate increase at the July 11 announcement climbed to more than 90% from 88% before the data, the overnight index swaps market indicated. We have placed a sell order at 1.3095
AUD/USD
Trading strategy: Buy
Open: 0.7415
Target: -
Stop-loss: 0.7345
Recommended size: 2.14 mini lots per $10,000 in your account
Short analysis: The 10-day MA limits the downside and RSIs are biased up. Monthly RSI is diverging. We closed our short position at the entry level (0.7410) and we will be looking to switch to the long. Bid placed at 0.7415.
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EUR/GBP
Trading strategy: Long
Open: 0.8820
Target: 0.8910
Stop-loss: 0.8775
Recommended size: 2.51 mini lots per $10,000 in your account
Short analysis: Our long is in black now, but long upper wick on Friday's candlestick is worrying.
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