EUR / USD - US GDP data in focus, conditions for a rollback have been formed
The first main news event of the week left behind. ECB meeting was mainly in line with market expectations, Mario Draghi noted the heightened risks with Italian budget, Brexit, but expressed confidence in the sustainability of the economic situation in the Eurozone. The deterioration of economic sentiment and the slowdown of the European economy coincides with the expectations of the regulator, and according to the head of the ECB do not bear systemic risks. Further, the policy of buying bonds will end in December 2018, as previously stated. However, the market reaction was negative. After the end of the press conference and strengthening of the American currency, as yesterday USD dollar index gained into the zone of the annual maximum. EUR/USD fell to August lows of 1.1380. Today there comes the second most important information bunch; the markets will analyze data on US GDP. A weak data is likely to provoke a profit taking on the US currency, taking into account the proximity of the weekend and overbought of the dollar. We just need to wait for statistics and analyze the market reaction. In addition, we should pay attention to the weekly market close basically weekly candle, as there are good chances for the pair to rebound from local lows.
Trading recommendations - out of market
GBP / USD showed a strong decline, the pair is oversold
The strong downward momentum of the British currency continued. Yesterday, the British currency lost a great amount of territory - the pair fell into our target area - zone 1.2780. The GBP / USD market is oversold somewhat and the continuation of the downward impulse looks problematic, quotes have rested on a strong support zone. Given the important statistics on the US, which may surprise and provide weaker data, as well as the proximity of the weekend, we can see a local pullback on profit taking.
Trading recommendations - out of the market
AUD / USD storming support at 0.7040, we expect an increase in the market decline
Over the course of Thursday trading, Australian currency showed amazing resistance to the strengthening of the American dollar. Australian dollar, one of all major currencies, was resistant to the dollar rally. AUD / USD pair was trading in a narrow range of 0.7100-0.7040. Nevertheless, on Friday, pressure on the Australian currency resumed, as the pair approached the level of 0.7040 and began to storm this level. The passage of this zone will open the way to the area of 0.6900.
Trading recommendations - sales from 0.7040
Gold formed the head and shoulders pattern with target $ 1243
An interesting technical picture is taking shape in the gold market, so far bulls completely dominates this market. Buyers have failed to gain a foothold upon $ 1233 level as during this week they stormed this level, this is a tactical springboard for market move higher. However, the support level $ 1230 is the operating base for the bulls; this is the area where buyers regroup their forces and again and again go on the attack. Long positions on this levels has been justified several times and brought good profits. In addition, a head and shoulders pattern has formed on the market, whose neckline is located in the $ 1236 area. In the case of the implementation and further breakout, the target will be around $1243. However, the proximity of the weekend and important statistics on the United States are making their own adjustments, we expect increased volatility and possible profit taking. Nevertheless, careful longs when the market rolls back look reasonable and interesting enough.
Trading recommendations - longs in the area of $ 1233 and below