The EUR/USD recovery enjoyed further momentum back above 1.1800. Importantly, this rebound took place in spite of a further widening in Italian-German yield spreads. Comments from the ECB were the main driver behind the euro recovery. Firmer ECB rate-hike expectations are likely to keep the common currency on a firmer footing ahead of the 14 June ECB meeting. We took profit on EUR/USD long today and are looking to get long again on an intra-day setback.
This is how MyFXspot.com trades now:
EUR/USD
Trading strategy: Buy
Open: 1.1785
Target:
Stop-loss: 1.1680
Recommended size: 1.90 mini lots per $10,000 in your account
Short analysis: Profit taken on EUR/USD long, earned: 230 pips, $384 per $10,000 in your account. The EUR/USD closed above the 1.1757 Fibonacci level, 23.6% retrace of the 1.2555 to 1.1511 2018 fall. The target at 1.1830 was reached. The pair is testing the 30-day MA at 1.1818 now and a close above that level will strengthen current bullish momentum. We are looking to get long again at 1.1785 on an intra-day setback.
GBP/USD
Trading strategy: Buy
Open: 1.3410
Target: -
Stop-loss: 1.3280
Recommended size: 1.15 mini lots per $10,000 in your account
Short analysis: 14-day exponential moving average is getting positive, which strengthens our view for a recovery move. We’ve placed a bid at 1.3410.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: USD/JPY bulls still need a daily close above the 200-DMA, at 110.19. The next resistance level is 110.62 Fibo, 76.4% retrace of the 111.39 to 108.12 fall. In our opinion USD/JPY outlook is mixed now with rising likelihood of downward move in the near tem.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The risk is very high here. Long upper wick on Tuesday’s candlestick and long lower wick on Wednesday’s candlestick suggest the volatility is high and it is har to predict the direction ahead of this week's G7 summit in Canada. It is better to stay sideways.
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 55-day SMA & daily cloud base act as a springboard and a new trend high follows. Further gains are likely as RSIs are biased up with no divergence. Stop-loss lifted to the entry level, the trade is risk free now.
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: Our long position is finally getting back on track. 7-day and 14-day exponential moving averages are both positively aligned. We need a close above June 1 high at 0.8809 now.
Trading ideas by MyFXspot.com