Sterling erased its earlier gains and edged lower on Tuesday as a rise in optimism over prospects for a Brexit trade deal with the European Union faded. Still, the pound remained close to five-week highs after EU chief negotiator Michel Barnier's comments on Monday that a Brexit deal was possible within weeks and given that British economic data has been supportive of the currency.
MyFXspot.com Trades:
Trading strategy: Long
Open: 1.1550
Target: 1.1750
Stop-loss: 1.1450
Recommended size: 2.00 mini lots per $10,000 in your account
Short analysis: EUR/USD is still on track for eventual gains to the 30-day upper bollinger-band at 1.1755. We have managed to get long at 1.1550, which is near the 30-day MA. Recent drops have found solid support ahead of the 1.1518 Fibonacci level, a 50% retrace of the 1.1301 to 1.1734 rise, we have placed our stop well below there.
Trading strategy: Buy
Open: 1.2960
Target: -
Stop-loss: 1.2850
Recommended size: 1.36 mini lots per $10,000 in your account
Short analysis: The GBP/USD broke above the August 30 high at 1.3043 today, but will probably close below that resistance level. This does not change the general market picture. We are looking to use dips as fresh buying opportunities.
Trading strategy: Short
Open: 111.30
Target: 109.30
Stop-loss: 112.30
Recommended size: 1.67 mini lots per $10,000 in your account
Short analysis: USD/JPY continues to fluctuate within the daily cloud (110.65-111.55). A daily close above the cloud top needed to unmask the 111.88 Fibonacci level, a 61.8% retrace of the 113.18 to 109.78 (July to August fall) and will be a threat to our position.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The USD/CAD is now contained within the upper 21-d Bolli (1.3235), short-term outlook remains bullish as lingering trade angst, NAFTA and China-related boost USD. Widening Bolli's hint at increased volatility in the near-term, above 1.3235 opens the way for 1.3290 July trend high, but we stand aside for now.
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Monthly techs suggests a deep fall is due as the pair holds below the 76.4% Fibo of the 2016-18 rally and RSI is biased down. Daily RSI diverged on the new low that was set earlier. A bounce might ensue but the bear trend will likely prevail.
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: After a sharp 1.85% fall from September 5 high the market is showing signs of stress. A long upper wick so far today keeping the bears happy but failure to make progress into the daily cloud suggests indecision creeping into the equation. Stand aside for now.
