Chinese President Xi Jinping pledged on Tuesday to further open China's economy and cut tariffs this year, in a speech seen as an attempt to defuse an escalating trade dispute with the United States.
The pound rose to a two-week high on Tuesday after the dollar fell and a top policymaker said the Bank of England should press ahead with an interest rate hike to curb inflation.
We took profit on USD/CAD short today. In our opinion medium-term outlook remains bearish and we will be looking to sell this pair again on upticks.
This is how MyFXspot.com trades today:
Trading strategy: Long
Open: 1.2220
Target: 1.2470
Stop-loss: 1.2140
Recommended size: 2.50 mini lots per $10,000 in your account
Short analysis: The EUR/USD rallies through the 55-day SMA. A new short-term high is set on the rally's extension. Further gains are likely. RSIs are biased up and the pair holds above the daily cloud as well as 10, 21 and 55-day SMAs. Our long opened at 1.2220 looks good now, the target is 1.2470.
Trading strategy: Long
Open: 1.4010
Target: 1.4270
Stop-loss: 1.3900
Recommended size: 1.36 mini lots per $10,000 in your account
Short analysis: Bullish trend remains intact here. The pair remains above short-term moving averages. The nearest resistance area is 1.4247/81 and our long’s target is at 1.4270.
USD/JPY
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The dollar rose on Tuesday to a four-day high against the Japanese yen after Chinese President Xi Jinping promised to cut import tariffs, easing concerns about a US - China trade conflict between that had fed safe-haven demand for yen. Trading signals are mixed. We will wait for clearer signals before opening a new position here.
USD/CAD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Profit taken at 1.2600 on USD/CAD short opened at 1.2900, earned: 300 pips and $410 per $10,000 in your account. In our opinion medium-term outlook remains bearish and we will be looking to sell USD/CAD again on upticks.
AUD/USD
Trading strategy: Long
Open: 0.7660
Target: 0.7880
Stop-loss: 0.7555
Recommended size: 1.43 mini lots per $10,000 in your account
Short analysis: Pair lifts further above the 21-day SMA and sets a new short-term high. Daily RSI deepens its bull bias and the monthly RSI is now turning up. Our AUD/USD long is in good shape.
EUR/GBP
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: New short-term low is set to keep bear sentiment intact. Doji forms on daily chart so a bounce is possible.
Trading ideas by MyFXspot.com