We used Friday's EUR/USD dip to open a fresh long position. A long lower wick on Friday's candle is encouraging.
The CAD firmed on strong wages data on Friday, but trade tensions with the US and doubts about a new NAFTA agreement might add volatility in the near term. We think no USD/CAD position is justified now from risk/reward perspective.
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: Fourteen-day momentum turned positive and 7-day exponential moving average is going to break above the 14-day ema, which is a bullish signal. Friday’s close above the 23.6% Fibo of 1.2555-1.1511 drop at 1.1758 will support EUR/USD bulls. We used Friday’s dip to open a long position at 1.1785, in line with Thursday’s suggestion.
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: The nearest resistance level is 30-day MA (currently at 1.3455), where Thursday’s gains were stopped. Weekly chart supports bulls. Lower wick on Friday's candle is also encouraging. We opened GBP/USD long at 1.3410.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: USD/JPY bulls are under intense pressure after the market failed to sustain the break above 110.14 Fibo, 61.8% retrace of the 111.39 to 108.12 fall and the 200-DMA now at 110.19. USD/JPY bears are now focused on the tenkan line at 109.19, a daily close below which will weaken the structure further. We stand aside for now.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: On the one hand, the US decision to raise tariffs also against Canada and the resulting breakdown in NAFTA talks has weighed on the currency. On the other hand, the BoC dropping the reference to being “cautious” on rates at its 30 May meeting has probably prevented a more intense sell-off beyond 1.30. The CAD firmed on strong wages data today, but trade tensions with the US and doubts about a new NAFTA agreement might add volatility in the near term. 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 candle is a good signal for our long position.
EUR/GBP
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: Long remains and support from the 10-Day SMA is encouraging as is the long lower wick on Friday's candle.
Trading ideas by MyFXspot.com