Recent USD dollar weakness brought this market quotes above the first resistance $1.1435. Though EUR/USD now looks more bearish, it is interesting enough that the zone 1.1430-1.1460 is an extensive and viscous resistance zone. Only consolidation above 1.1460 will confirm the transfer of market control back to the buyers. Although we do not believe in the possibility of dropping below yearly minimum around 1.1300, according to technical analysis, we should consider this growth as correction, and the area 1.1430-1.1460 is indicative in this regard. Today, there finally comes out the main statistics of the week, data on the US labor market. It seems that the market has already decided to sell the dollar in advance. Fundamental factors have changed somewhat; there are signs of a weakening risks of contradictions in China-American relations. We expect EUR / USD to return to the level of $ 1.1515 in the middle term, but before that the market has yet to overcome the levels of $ 1.1460. Local support is located in the $ 1.1390 zone.
Trading recommendations - longs in the 1.1390 and 1.1420 zones.
The British pound has always remained a technical market. The current correction confirms this. After strong sales of the beginning of the week, the British currency turned to correctional growth, yesterday the pair overcame local resistance in 1.2920 area and today reached the target zone of the current impulse. This is the area 1.3000-1.3030. Thus, technical oversold was eliminated and the market returned to more balanced areas. This zone is quite complex in technical terms - the market will not pass it on the move, even accepting a large-scale correction of the American dollar. In this sense, we recommend taking profits and looking for new purchases in the 1.2930-1.2955 area.
Trading recommendations - longs in the area of 1.2930-1.2955 once market pullbacks
The passage of resistance zone 0.7150-0.7145 opened the Australian dollar access to the upward operational space. Using oversold conditions and long consolidation with accumulated volumes, the pair continued to grow and reached the levels of two-month highs. This is the area 0.7235-0.7245. Thus, over the past 24 trading hours, the Australian dollar has strengthened by more than 2%. The market has approached the upper border of the downward medium-term trend, we recommend taking profits and expect further developments, and this is a pullback to the 0.7200 area. However, there is some space to gain ahead; the target of the current correctional pullback is area of the market around 0.7300
Trading recommendations longs after a rollback in the 0.7200 area.
A three-day decline in gold was played out in one trading session. Yesterday, gold recovered back to the level of 1233. This is currently a strategic point of resistance. This level separates the market from the test of recent highs in the area of1244. We said two weeks ago that this is a difficult area for the market and the market would be busy with it for a long time. The rapid recovery of the market after a three-day decline clearly shows who controls the market. Gold is completely under bulls control. However, we do not recommend to open long positions above the 1233 mark today. This is dangerous considering the news coming out and the increased volatility. We also recommend taking profits on previously open long positions. Immediate support is located in area 1229-1228.
Trading recommendations - lonhs in the $ 1229 area.