Canada's annual inflation rate in February jumped to 2.2% from 1.7% in January, the highest level in more than three years. The annual rate was above the 2.0% market forecast. The data supported the loonie and our USD/CAD short. Separate data showed that Canadian retail sales grew by a less-than-expected 0.3% in January from December. Investors shrugged off weaker retail sales reading.
MyFXspot.com trading strategies:
EUR/USD
Trading strategy: Long
Open: 1.2330
Target: 1.2550
Stop-loss: 1.2245
Recommended size: 2.11 mini lots per $10,000 in your account
Short analysis: The EUR/USD bulls continue to build despite recent setbacks, the matching daily 1.2240 lows this week ahead of the 1.2223 Fibo level (76.4% retrace of 1.2155-1.2447 rise) have been key to this. The market grappled with the falling trendline off the February 16 high on Thursday, the line has dropped to 1.2357 on Friday. A daily close above the trendline will be an important step to our target.
GBP/USD
Trading strategy: Long
Open: 1.4085
Target: 1.4300
Stop-loss: 1.3985
Recommended size: 2.00 mini lots per $10,000 in your account
Short analysis: Thursday volatility ended with a new trend high and bearish close. A long upper wick on Thursday’s candlestick may be worrying, but the pair remains above the 7-day and 14-day exponential moving averages, both positively aligned.
USD/JPY
Trading strategy: Short
Open: 106.00
Target: 1004.00
Stop-loss: 107.00
Recommended size: 2.12 mini lots per $10,000 in your account
Short analysis: The USD/JPY bias remains bearish, as tough support at 105 gets broken. The 76.4% retracement of the 99.00-118.66, June-December 2016 rise at 103.64 is the next objective. We remain short.
USD/CAD
Trading strategy: Short
Open: 1.2900
Target: 1.2600
Stop-loss: 1.3050
Recommended size: 1.72 mini lots per $10,000 in your account
Short analysis: The loonie was boosted by Canadian CPI data. The pair is consolidating below 21-day SMA at 1.2899 and further downward move is likely next week.
AUD/USD
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: The AUD/USD remains under pressure, below negatively aligned short-term moving averages. Monthly RSI is biased down, but we think some trend reversal attempts are likely soon. We will wait for clearer signals before opening a news position here.
EUR/GBP
Trading strategy: Await signal
Open: -
Target: -
Stop-loss: -
Recommended size: -
Short analysis: Bounce off March 22 low extends today. Daily RSI turns from oversold territory. Daily studies suggest the bounce has legs. The signals are not clear enough to open a new EUR/GBP position.
Trading ideas by MyFXSpot.com