EUR / USD updated three-month highs
A breakthrough and exit from the medium-term side range took place. Although the pair marked a local maximum in the area of 1.1565, the bulls are still insufficiently entrenched at new levels. They need to act decisively and defend the mark 1.1515, which in the new conditions becomes a new front line. The nearest buyers ’rears are located on the upper end of the mentioned range - this area is 1.1465-1.1475. If buyers can gain a foothold in the area of 1.1515 (and we believe they can) the next target of the upward impulse will be area of 1.1645.
Trading recommendations - longs in the 1.1515 area and below in the 1.1475 zone
GBP / USD - trading takes place in a narrow zone 1.2720-1.2780
The market continues to trade in restrained mode, as the British currency is unable to take advantage of USD dollar weakness on the background of a negative fundamental background. The risks of a hard Brexit put pressure on the pound, and despite the technical conditions, the pound is trailing behind around area 1.2770-1.2780. However yesterday, a new local maximum of 1.2800 was designated.
Trading recommendations - longs when market pulls back to 1.2740-1.2720 and lower
Gold - the market returned to the area of 1300
The weakness of the dollar returned the gold quotes above local resistance $ 1290, now it is the closest local support. At the same time, the bulls seem to have no necessary resources to storm the 1300 mark right now. Buying at these levels is somewhat risky. We need to wait for the consolidation above 1300 or a kind of pullback to sustainable support levels - 1277 or lower 1270
Trading recommendations - longs in the zone of 1285 and lower in the area of 1277
AUD / USD - attempts to resume the correction
The growth of the Australian dollar resumed on Wednesday. Yesterday, the market broke the resistance mark around 0.7145-0.7160. Resistance is now located in 0.7200 area and we believe that it is a strong zone, that can stop the market. We recommend to stay out of the market and wait once the market settles above this area.
Trading recommendations - out of the market