Boundaries of the channel: EUR/USD; GBP/USD; USD/JPY.

 

The index of purchasing managers in the UK (construction PMI), which will be published today, is unlikely to seriously affect the GBP/USD currency pair. Recently, market participants have split into two camps. One side argues for the further fall of the dollar index, and the other, respectively, for growth. Hence, we should expect increased volatility not only in the GBP/USD pair, but also in other major currency pairs. The pound outlined its levels in motion for the near future, which are in the price channel 1.26-1.33. When approaching the indicated goals, you can try to enter positions along with possible exit points at the opposite boundary of the channel. Such tactics seem justified from the point of the profit / risk ratio, since the stop placed at the entry of the position will be next to the entry point, and the goal of the possible profit will be, as percentage, multiple times more than the risk of loss if the stop order is executed.

 

 

With the EUR/USD currency pair, the situation is likely to evolve in approximately the same way. Currently, from the top, movement is limited at the level of 1.21, and from below the 1.165 level. The surprise on Thursday may be caused by the ECB and its decision on the interest rate, and as always, the main intrigue of the meeting lies in the comments of the ECB regarding its decision. However, there is no need to wait for revolutionary statements on their part, so it may be worth catching the currency pair near the indicated levels without forgetting to limit the risk of the position with a well-adjusted stop-order.

 

 

The mark of 108 on USD/JPY pair is considered by many market participants to be a very attractive level for withdrawing from the yen in favour of the US dollar. It is quite reasonable to join such an opinion, and even in case of aggravation of the geopolitical situation, the strong withdrawal of the pair below the 108 mark looks like a highly unlikely scenario. Only in the event of conflict on the Korean peninsula, the level of 108 on the pair USD/JPY can give up resistance and the movement will rush towards to the mark of 105.

 

 

Care: These reviews are a private opinion of ARUM CAPITAL and are provided for information only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.

 

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