Although we witnessed high trading volatility in EUR / USD market on Tuesday trading session, the situation in this market has not changed much over the past trading day. Technically, there was a tactical interception of the initiative by the sellers, as bulls were dropped from 1.1360 amid political instability in France. However, for three weeks, the pair is trading in the range of 1.1400-1.1305, and only a breakthrough of the strategic support line 1.1300 will mark the change in the mood of this market and the transition from consolidation to more declining dynamics. In this regard, we will observe the level of 1.1300, which is an important level of support, and there are good chances for a rebound from this level in the area of 1.1360. Today session contains important reports that point to the level of inflation in the United States. The consumer price index (CPI) will be published. Eurozone will present data on industrial production.
Trading recommendations – careful longs around 1.1300
On Friday, the market displayed the maximum level in five months, a mark around $1249. Immediately after that, the market moved to the expected correction, and falling in the course of three sessions, the market dropped to the first local support zone, 1241-1243. The question now is whether the market will be able to stay at this point or will the corrective decline continue to the level around 1238.
Trading recommendations - longs in the area of 1239-1240
The surge in political uncertainty and Brexit issue has led to strong sales of the British currency and a sharp decline in prices. As a result, 1.2725 support level and then the four-month minimum around 1.2665 were broken. GBP/USD fell to a level of 1.2523, thus moving to a completely new range. Negative sentiment on this market persists, however, the market is now oversold and longs seems somewhat dangerous now. We must wait for a pullback.
Trading recommendations - out of market
Over the course of three trading sessions, the Australian dollar is trying to return above the 0.7200 mark. This mark was an important support, but now strong resistance. At the same time, the technical prospects of the Australian dollar are complicated by a complex fundamental background.
Trading recommendations – out of the market