USD/CAD Short In Black After BoC Decision
MyFXspot research | Jul 11, 2018 10:41AM ET
The Bank of Canada raised rates today, as widely expected, and suggested that more rate hikes were in the pipeline. Our USD/CAD short is back in black now.
We opened AUD/USD long on today's dip.
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: EUR/USD once again broke below the daily cloud base, now at 1.1712, registering one of the biggest one-hour fall of July. A long lower shadow was left on Tuesday's candlestick line, indicative of a rejection of the downside. The scenario looks similar today. A daily close back above the cloud base will strengthen the market structure.
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 remains above the 7-day exponential moving average, which keeps the bull momentum intact. Key resistance level is daily high on July 9 at 1.3363, while key support is 1.3192.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: USD/JPY is traded circa the 30-day upper bollinger-band (now at 111.24). This price action is indicative an overbought market. The risk is growing for a dip back to the 30-day MA now at 110.25. On the upside a major falling trend-line from 2015 comes in at 111.57, this provides a tough obstacle for medium-term bulls to overcome.
USD/CAD
Trading strategy: Short
Open: 1.3095
Target: 1.2905
Stop-loss: 1.3180
Recommended size: 2.31 mini lots per $10,000 in your account
Short analysis: We used recent uptick to get USD/CAD short. The Bank of Canada raised rates on Wednesday and said further gradual rate hikes will be warranted. The central bank used neutral language in its statement, which could disappoint investors who are looking for a "dovish hike" in the face of elevated trade uncertainty.
AUD/USD
Trading strategy: Long
Open: 0.7415
Target: 0.7555
Stop-loss: 0.7345
Recommended size: 2.14 mini lots per $10,000 in your account
Short analysis: We used today’s fall to open a long position at 0.7415. Although, daily RSI is biased down now, monthly RSI rises and a bull hammer is near forming.
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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: EUR/GBP gravitates towards the middle of the recent 0.8801-0.8902 range. The pair remains above the 7-day exponential moving average, which suggests bullish view has the upper hand.
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