GROWTHACES.COM Forex Trading Strategies:
Trading Positions:
EUR/USD trading strategy: long at 1.1300, target 1.1550, stop-loss 1.1240
GBP/USD trading strategy: long at 1.5040, target 1.5250, stop-loss 1.4950
USD/CHF trading strategy: long at 0.9160, target 0.9400, stop-loss 0.9200
USD/CAD trading strategy: long at 1.2590, target 1.2980, stop-loss 1.2480
EUR/GBP trading strategy:long at 0.7470, target 0.7650, stop-loss 0.7490
EUR/CHF trading strategy: long at 1.0160, target 1.0650, stop-loss 1.0400
Pending Orders:
USD/JPY trading strategy: sell at 118.60, if filled target 116.60, stop-loss 119.10
GBP/USD Under Pressure Despite Good Construction Data
(stay long for 1.5250)
[ul]
[li]Britain’s construction PMI rose to 59.1 from December’s 17-month low of 57.6.
[/li][li]GDP data last week showed construction output, which accounts for just over 6% of Britain’s economy, shrank at the end of last year at the fastest pace since 2012, but today’s PMI pointed to better months ahead. Growth strengthened across housing, commercial and civil engineering as new orders rose in January at the fastest rate in three months.
[/li][li]The GBP/USD trimmed earlier losses after the Britain’s construction PMI release. The rate went up to 1.5020 after the data, up from below 1.5000 before its release.
[/li][li]We keep our GBP/USD long taken at 1.5040. We expect good PMI services reading tomorrow – our forecast of 56.5 is slightly above the market consensus of 56.3 and much above the reading from the previous month of 55.8.
[/li][/ul]
Significant technical analysis’ levels:
Resistance: 1.5073 (10-dma), 1.5100 (high Feb 2), 1.5161 (high Jan 29)
Support: 1.4952 (low Jan 23), 1.4900 (psychological level), 1.4814 (low Jul 9, 2013)
AUD/USD: RBA Cut Rates, Market Expects Further Easing
(we’ve made a small loss, stay sideways now)
[ul]
[li]The Reserve Bank Of Australia cut its cash rate a quarter point to 2.25% at its today’s policy meeting aiming to spur a sluggish economy while keeping downward pressure on the local dollar.
[/li][li]RBA Governor Glenn Stevens said: “Overall, the Bank’s assessment is that output growth will probably remain a little below trend for somewhat longer, and the rate of unemployment peak a little higher, than earlier expected. (…) This action is expected to add some further support to demand, so as to foster sustainable growth and inflation outcomes consistent with the target.”
[/li][li]The move was given extra urgency by the recent rush to ease by other central banks, which meant the RBA had to follow suit if only to stop its currency from rising to uncompetitive levels. The outlook for domestic inflation had also moderated as petrol prices plunged and wage growth disappointed.
[/li][li]The market moved to price in a greater chance of a further easing at the March meeting, which in our opinion is uncertain and depends on moves of commodities’ prices. The bank will release its statement on monetary policy on Friday and will probably present some downward revisions to inflation and growth forecasts. The RBA will be data dependent now, mainly focused on employment data. We expect macroeconomic outlook to become brighter soon.
[/li][li]Australia’s trade deficit amounted in December to AUD 436 million vs. AUD 1016 million a month earlier. The market consensus assumed a deficit of AUD 775 million.
[/li][li]Australian approvals to build new homes fell in December by 3.3% mom vs. forecast fall of 5.0% mom and a rise of 7.7% mom in November.
[/li][li]The AUD/USD dropped to its new six-year lows after the RBA cut from 0.7790 before the decision. The AUD/USD reached a day’s low of 0.7627. We closed our risky AUD/USD long (opened at 0.7780) with a small loss at 0.7765.
[/li][li]The AUD may remain under pressure in the coming days, ahead of the release of revised central banks’ forecasts on Friday. Investors will be focused also on retail sales figures this week (Thursday, 0:30 GMT).
[/li][/ul]
Significant technical analysis’ levels:
Resistance: 0.7832 (high Feb 2), 0.7907 (high Jan 29), 0.7929 (10-dma)
Support: 0.7627 (low Feb 3), 0.7600 (psychological level), 0.7500 (psychological level)
Source: Forex Signals