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EURUSD seems to return back to its bearish direction as we had estimated last week. After a bullish Monday, there was a very bearish Tuesday while the rest of the week was quite consolidating. The current week has a strong bearish open and we will follow it by opening sell positions. 1.1260 is our first target and below that, the area of 1.12 is also possible. Monday is full of news for the pair (German Unemployment change, US ISM) but Friday will be extremely volatile due to US Non-Farm Payrolls.
The resistance of 1.2765 could not break for good (1.2782 was the highest price) and the instrument took a bearish trend that brought it below 1.27 again. We favour short positions this week with main target the area of 1.2560. News for UK economy include Manufacturing PMI on Monday, Construction PMI on Tuesday, Services & Composite PMI on Wednesday and Unit Labour Costs on Friday but none of it seems to increase volatility significantly.
We had an excellent choice of avoiding trading at USDJPY last week since Tuesday and Wednesday were volatile but opposite days and the rest days were days of uncertainty. This week, the pair opened with a gap at 108.14 and we’ll stay out again because there is no clear view. Markit Japan PMI on Wednesday and Leading & Coincident Indices on Friday are the important news for the Japanese economy this week.
The bullish trend of the pair that we had suggested last week, finally confirmed and we took the target of 122.80 a few hours ago. Current Monday seems bearish so far but we’ll insist on buy positions with main target the area of 123.70.
Another bullish week for EURGBP passed by. We took the target of 0.8970 and this week we’ll wait until the pair breaks 0.70 for good (at least 15-20 pips above 0.70) in order to open new long positions, targeting the area of 0.9060 and maybe 0.9090.
We took the profit of our short position last week at 1.3070 (actually the week’s low was 1.3058). We’ll keep on shorting this week with our eyes on US NFPs on Friday but we believe that before that, we can reach the area of 1.29. Besides the US news in Friday, there is the Canadian Unemployment Rate the same day so we’ll take care to close any positions before.
USDCHF had a weekly low below 0.97 last week but after that there was a bullish reaction that leaded to a false breakout of 0.98 and a closing price at 0.9761. The long-term trend is undoubtedly bearish but our Machine Learning models show a bullish reaction so we’ll stay out this week.
We took both of our targets last week (0.6960 and 0.6990) and AUDUSD kept on going by breaking 0.70 as well. The trend is definitely bullish but this week there may be a cutback of Rates from RBA on Tuesday from 1.25% to 1.00% which may mean a significant pullback for the pair. We stay out because the risk is too high.
SP500 hit the price of 2,910 points that we had suggested and then the last two days of the previous week, it had a strong bullish reaction. It also broke the important resistance of 2,950-2,960 points so the price area of 3,000 points is now visible. We must be very careful though because 3,000 points is a very strong resistance so we’ll avoid staying in the market if the price hits 2,990-2,2995 points.
Last week was bullish but the opening of the current week crashed the resistance of 12,400-12,500 points through a huge gap. We will wait for an expected gap filling and we will open buy positions with target 12,850 points.
FTSE100 had sideways movements last week so staying out was an excellent choice. This week it opened with a big gap (+0.64%). We prefer long positions looking for 7,530 points at the first place and maybe 7,630 points.
Gold couldn’t keep its bullish trend anymore and during last week it took a bearish direction because these prices are an overbought status for the commodity. We insist on shorting Gold looking for targets at the area of $1,360.
Last Wednesday we took the target of our long position at the price of $59.70. Then US Oil had a bearish Friday and finally it closed 1.79% lower at $58.16. Keeping in mind the fundamentals (uncertainty at OPEC and US-China trade truce) and our Machine Learning models, we’ll sell the commodity this week, looking for a profit above $55