Profit On EUR/USD Long: Medium-Term outlook Bullish
MyFXspot research | Sep 20, 2018 08:46AM ET
GBP/USD rallied to two-month highs on forecast beating British retail sales data and growing optimism that Britain and the European Union are making significant progress towards a Brexit deal at an EU leaders summit. We keep our buy-on-dips strategy.
We have also taken profit on EUR/USD long. The Federal Reserve is next week expected to raise benchmark borrowing costs and shed more light on the future rate path. But we do not think this will change medium-term EUR/USD trend. We have placed another EUR/USD bid.
EUR/USD
Trading strategy: Buy
Open: 1.1645
Target: -
Stop-loss: 1.1570 (raised from 1.1450)
Recommended size: 2.67 mini lots per $10,000 in your account
Short analysis: Profit taken at 1.1750, earned: 200 pips, $400 per $10,000 in you account. EUR/USD bulls broke above the August 1.1734 peak, which opens the way to the 1.1780 Fibonacci level. 1.1780 Fibo is a 38.2% retrace of the 1.2556 to 1.1301 fall. We have placed a new bid at 1.1645 level in anticipation for a bullish resumption.
GBP/USD
Trading strategy: Buy
Open: 1.3130
Target: -
Stop-loss: 1.3020
Recommended size: 1.36 mini lots per $10,000 in your account
Short analysis: So far we have seen no negative fall-out from Wednesday's major candlestick doji. A bid returns and bull run resumes. We continue to favour a buy on dips strategy with offer raised to 1.3130.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: USD/JPY has failed to close above the key 112.38 Fibonacci level twice, a 76.4% retrace of the 113.18 to 109.78 (July to August) fall, on Tuesday and Wednesday. This failure is weighing heavily on USD/JPY.
USD/CAD
Trading strategy: Short
Open: 1.3065
Target: 1.2795
Stop-loss: 1.2970 (lowered from 1.3200)
Recommended size: 1.44 mini lots per $10,000 in your account
Short analysis: The pair broke below the 76.4% Fibo of 1.2887-1.3225 rise (1.2967). Our short is in good shape now. We have locked in profit at 1.2970.
AUD/USD
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Trading strategy: Buy
Open: 0.7235
Target: -
Stop-loss: 0.7135
Recommended size: 1.50 mini lots per $10,000 in your account
Short analysis: Pair climbs above the 21-day moving average and clears 0.7230/40 resistance. RSIs are biased up and a monthly bull hammer candle is forming. Bull sentiment is elevated. A bid is placed at 0.7235.
EUR/GBP
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The EUR/GBP is below its daily cloud and attempting to hold a break under the 100-day moving average (0.8865). Daily negative momentum increasing but stochs yet to reflect price weakness. We stand aside.
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