Shorts-and-longs by Alexander Kul

[alextrader79]

A correctional movement is observed on AUD/USD during the last trading sessions. The Aussie is under pressure due to the weak data on the Australian trading balance. I expect a correction of the AUD/USD quotes. I’ll sell the pair, if it fixes below the 0.7920 level. The pair may move to 0.7880.

 

[alextrader79]

The report on the US labor market is at the center of attention today. Preliminary data from ADP and statistics on business activity in the non-manufacturing sector from ISM turned out to be weak. At the same time, the experts expect an increase of the average hourly wage and a drop of the unemployment rate to 4.3%. A positive report can strengthen investors' expectations about another increase of the Fed's interest rate. I expect high trading activity today. So, I won’t trade today but just watch the market. I’ve identified the following key levels:

EUR/USD
support : 1.1835, 1.1760
resistance: 1.1900, 1.1950

 

[alextrader79]

USD/JPY
support: 110.00, 109.50
resistance: 110.40, 110.90, 111.30

 

[alextrader79]

The US Department of Commerce published a positive report on the labor market on Friday. The demand for the US currency is at a fairly high level now. I expect further strengthening of the US dollar against the major currency majors in the nearest future.
USD/JPY is testing a strong 110.90 resistance level at the moment. I’ll buy it, if the price fixes above this mark. The closest target for taking profit is the 111.30 resistance.

 

[alextrader79]

The euro is testing a 1.1800 round level now. I plan to sell EUR/USD after the breakdown and retest of the 1.1785 level. The pair may move to the 1.1740 local support.

 

[alextrader79]

Yesterday's trading was very calm. Majors were traded in a rather narrow range.
I still expect a further correction on EUR/USD. I plan to sell, if the price fixes below the 1.1800 round level. The pair may move to the 1.1740 local support level.

 

[alextrader79]

There is a correction on USD/CAD now. It seems to me that the pair has a good potential for the further growth. The demand for the US dollar remains at a fairly high level. I plan to buy it, if the price fixes above the 1.2675 local resistance. The goal for taking profit is the 1.2700 round level. I’ll use the trailing stop for tracking this position.

 

[alextrader79]

The technical pattern on GBP/USD is ambiguous at the moment. The divergence of price and MACD histogram (a strong reversal formation) has formed. At the same time, I don’t exclude the further fall of the quotes as the demand for the US dollar is at a high level. I’ll open positions from the key levels.

I’ll buy GBP/USD, if the price fixes above 1.3015. The goal for taking profit is the 1.3055 local support.
I’ll sell, if it fixes below 1.2975. The pair may move to 1.2940.

 

[alextrader79]

The bearish sentiment prevails on USD/JPY. The demand for the yen has grown due to the tension on the Korean peninsular. I’ll open deals in the current trend direction and sell the pair after it fixes below the 109.65 local support. It may potentially move to 109.25-109.00.

 

[alextrader79]

Aggressive sales prevailed on USD/CHF yesterday. The quotes fall exceeded 1%. It happened due to the risk growth on the Korean peninsular. These events caused the increase of the demand for safe assets. I’ll sell USD/CHF after the price fixes below 0.9650. My take profit will be at 0.9615.