EUR / USD - expected correctional pullback from the annual minimum has started
Yesterday, the market did not have one tick to 2018 lows -1.1300, when the quotes turned around and the market moved to correctional growth amid profit taking. In general, we expected this development, as European currency was obviously oversold. However, US dollar index still managed to update the annual highs (96.98) and only after that did it move on to the correction. This is an application for continued growth. But today, on Thursday in early European trading, the dollar index broke below the first local support of 96.65 points. The next local support is located in the zone of 96.35 points and than lower around 96.10. For the European currency, this means the space for correction, the nearest resistance level is located around 1.1365-1.1375. If the market manages to pass this first obstacle, we will see correctional growth in the 1.1435 zone. However, we have the most important Friday news ahead and today we can expect a decrease in market volatility - the market is getting ready to analyze data on US labor numbers. if yesterday we recommended buying the European currency at the levels of annual minimums, today we need to hold open positions and avoid opening new ones.
Trading recommendations - out of the market
GBP / USD - the correction began yesterday, the dollar's pullback will strengthen the corrective growth of the pound
The British currency corrected and on Tuesday indicated readiness for corrective growth. In the course of growth, quotes returned to the area of 1.2920, and this is the first significant resistance in the way of the corrective British pound. However, taking into account the strong selling and dollar correction, this level can be passed immediately. The second option is to roll back lower and resume the upward correction; the target is the territory of the 1.3000 level.
Trading recommendations - purchases when rolling back from 1.2920 and when passing this mark
AUD / USD- breakthrough of the 0.7100 zone opens the way to the 0.7170 area
Only a pullback of the dollar index from the updated historical maximum allowed the Australian currency to break through the local resistance around 0.7100. Today, AUD / USD market has reached the upper limit of the sideway range, this is an area of 0.7150, as well as October maximums. The current technical picture suggests that the upward movement may continue to the area of 0.7170. Now the nearest support zone is located in the 0.7125 area.
Trading recommendations - 0.7135-0.7120.
Gold quickly recovers losses of the previous days
Gold market never ceases to amaze. The three-day decline, when the market corrected from the operational resistance around $1233 down to $1215, was caused by the fixation of long positions, amid USD dollar rally up to yearly highs. It was a technical decline when the market broke through two strong levels of support - $ 1225, $ 1220. Only $ 1215 mark stopped the downward movement of the market. Today the market is showing surprisingly fast recovery. In the early European trading session, the market strengthened to $ 1225- $ 1226. Now this is the middle zone of the this wide range $ 1215- $ 1233. If the market can immediately go through this zone, then this will be an additional strong signal to open long positions for storm the highs around 1233-1240. The nearest tactical support in the zone of 1221.
Trading recommendations longs in the 1220 zone and during the passage of the level of 1225.