GROWTHACES.COM Forex Trading Strategies:
Trading Positions
EUR/USD: long at 1.1915, target 1.2060, stop-loss 1.1875
GBP/USD: long at 1.5255, target 1.5480, stop-loss 1.5175
USD/JPY: long at 119.50, target 121.80, stop-loss 119.70
USD/CHF: short at 1.0085, target 0.9960, stop-loss 1.0120
EUR/GBP: short at 0.7850, target 0.7700, stop-loss 0.7840
EUR/CHF: long at 1.2025, target 1.2090, stop-loss 1.1995
AUD/NZD: short at 1.0530, target 1.0320, stop-loss 1.0580
AUD/JPY: long at 96.80, target 99.00, stop-loss 96.10
GROWTHACES.COM Pending Orders
USD/CAD: buy at 1.1660, if filled target 1.1990, stop-loss 1.1580
EUR/USD: FOMC Minutes On Wednesday May End The USD Rally
(long for 1.2060)
[ul]
[li] Boston Federal Reserve Bank President Eric Rosengren repeated his call for the U.S. central bank to take its time in establishing more normal policy after years of stimulus to boost the economy. While the Fed is widely expected to begin its lift-off sometime in the middle of this year, officials like Rosengren have advocated for a slow and steady process. Rosengren said that the last time the Federal Open Market Committee raised rates after a recession in June of 2004, the unemployment rate was at 5.6%, below the current 5.8%, and inflation was at 2.8% – well above its current reading of 1.2%.
[/li][li] The Sentix index tracking morale among investors and analysts in the euro zone rose to 0.9 in January from -2.5 the previous month. Sentiment in the euro zone improved in January for a third month running as investors and analysts shrugged off uncertainty over new Greek elections and their view of longer-term economic developments reached its most optimistic level in six months. A Sentix sub-index of expectations for the euro zone’s economy recovered to 13.5 in January from 12.0 the previous month, while investors’ perception of the current economic situation improved to -11.0 from a previous -16.0.
[/li][li] The EUR/USD broke below 1.2000 and fell to 1.1876, its lowest since early 2006. The nearest support level is 1.1860, the monthly base from March 2006. The traders are waiting for U.S. Federal Reserve minutes on Wednesday. We see increasing expectation for the Fed to raise interest rates soon, but less hawkish Fed minutes on Wednesday may stop strongly bearish trend. We expect also slightly lower reading of U.S. ISM non-manufacturing on Tuesday, which would be also negative for the USD bulls. On the other hand, we see also rising political concerns ahead of Greece’s general election that are negative for the EUR bulls.
[/li][li] Our forex trading strategy for the EUR/USD is to get long at 1.1915 in anticipation of corrective moves. We set the target at 1.2060. After a short correction in the days ahead we expect a continuation of downward trend until January 22, when the ECB meets to make monetary policy decisions.
[/li][/ul]
Significant technical analysis’ levels:
Resistance: 1.2006 (hourly high Jan 5), 1.2109 (high Jan 2), 1.2124 (10-dma)
Support: 1.1860 (low March, 2006), 1.1826 (low February, 2006), 1.1800 (low January, 2006)
GBP/USD At Lowest Levels Since August 2013
(long for 1.5480)
[ul]
[li] Britain’s construction PMI fell to 57.6 in December from 59.4 in November, the lowest level since July 2014. The reading was still comfortably above the level of 50 pts which denotes growth in the sector’sactivity. The weakest sector was civil engineering, which reported an outright fall in output for the first time since May 2013, while the rapid rate of growth in house-building eased slightly to its lowest since June 2013. The survey also showed signs that wages might be starting to rise in the sector, with rates paid to subcontractors growing almost as rapidly as November’s record-high pace.
[/li][li] Prime Minister David Cameron said on Sunday he would like to bring forward a planned referendum on Britain’s membership of the European Union from 2017 if his Conservatives win a national election on May 7.
[/li][li] The GBP/USD fell to its 17-month low of 1.5185 in Asian trading. We expect corrective moves on the GBP/USD in the days ahead. We got long at 1.5255 and set the target at 1.5480. We expect slightly lower U.S. non-manufacturing ISM index tomorrow and FOMC minutes on Wednesday that could disappoint traders expecting interest rates hikes soon.
[/li][li] The EUR/GBP rebounded and we got short again at 0.7850, the target for this position is 0.7700.
[/li][/ul]
Significant technical analysis’ levels:
Resistance: 1.5336 (high Jan 5), 1.5507 (10-dma), 1.5584 (high Jan 2)
Support: 1.5185 (hourly low Jan 5), 1.5104 (low Aug 2, 2013), 1.5080 (low Jul 17, 2013)
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