13/05/2019
IMPORTANT DISCLAIMER
The information of this report is of a general nature only. It is not a personal financial advice. It does not take into account your objectives, financial situation and personal needs.
a-Quant is not responsible for your actions and recommends you contact a licensed financial advisor before acting on any information contained in this general information report.
EURUSD
The bullish reaction of EURUSD is still on. Price 1.1110 acted like a spring that pushed the instrument higher. Important news during the current week, mostly on Tuesday and Wednesday will define the direction for EURUSD. We remain sellers as a main trend but we will take advantage of short-term long positions.
GBPUSD
GBPUSD turned down during the last week. Monday, Tuesday and Wednesday were very bearish while Thursday and Friday were quiet. Things with GBP are extremely fragile, even a rumour or a sudden announcement may change its direction dramatically. The euro elections are 2 weeks ahead and in UK, Nigel Farage Brexit party leads at the polls and may perplexes the situation more. Volatility keeps on increasing and we will prefer short-term short positions for this week.
USDJPY
On this Monday morning the target of 109.70 achieved, giving us important profit. We believe that short term the downtrend may continue near the area of 108.60, especially if the trade deal possibility fades. Long term for 2019 we see much more weakness for JPY and the pair to reach 1.14 at some point. News on Wednesday and Friday may cause high volatility though.
EURJPY
The bearish trend of EURJPY is very strong but there’s an important support at 122.20. Our main strategy is opening sell positions If the high volatility environment persists but we’ll take advantage of some short-term opportunistic long positions as well. We must take into account that euro elections are held in 2 weeks time and the possible unexpected results favouring Eurosceptics & extremist parties will weaken the euro.
EURGBP
The bullish reaction of EURGBP was on for all last week. There’s a strong double top resistance at the area of 0.8675 but if there will be a break-out of this price, next target is 0.8820. Again, we must be very careful on GBP for the next period due to the fickle politics, a we explained above.
USDCHF
The area of 1.02 was a very difficult area for USDCHF to retain. A strong bearish reaction took place and we believe that the 1:1 exchange rate is achievable. Volatility increased importantly and we must be very careful with our Stop Loss. We think that the resistance of 1.02 (maybe a few pips above) is a very good suggestion for the Stop Loss.
AUDUSD
AUDUSD had a short-term consolidation around the area of 0.70 which is a very important support as we had successfully estimated. Since price could not stay above 0.70, we believe that the bearish trend will carry on and since there’s not a visible support below this area, we suggest a trailing stop with a wide step for taking the maximum of profit. We will try to stay out of the market during the unemployment rate announcement on Thursday.
AUDJPY
The instrument reached the target of 76.50 that we suggested last week. There’s a strong support at 76.30 but below that, there’s only the 0.72 so we believe that a trailing stop mechanism with wide step would help enough. We will try to stay out of the market during the unemployment rate announcement on Thursday.
SP500
It was a very bad week for SP500. Only last Friday was bullish trying to get back some of the losses. This Monday though is bearish again which leads us to the conclusion that the downtrend may continue. The area of 2800 points is visible. Generally, we would open only short time frame opportunistic positions as long as the Twitter induced politics dominates markets.
DAX30
After the peak of 12,450 points, DAX30 reversed with a strong downtrend. 11,830 points is the first target for sellers and the second target would be 11,320 points. Tuesday and Wednesday will be very volatile days due to important news for Germany and Eurozone.
FTSE100
The downtrend that we had estimated for last week confirmed. We’ll keep on shorting the index with targets 7,150 and 7,060 points.
Japan225
Japan225 is in a very strong bearish movement. Last week the Index lost more than 3%. We’ll follow the trend and we’re looking for targets in the areas of 20,880 points (1st target) and 20,200 points (2nd target)
Gold
Gold is in a consolidation the last days. We still believe that the long-term trend is bearish and as we did last week, we’re looking for optimum entry points for opening sell positions that we’ll close above $1,266 which seems to be a strong support.
US Oil
US Oil applied the very rare three inside bar pattern last week. Since this presages a squeeze that will be followed by an explosion, we would prefer buy positions with the visible targets of $64.40 and $66.20.