Main trading ideas on financial markets for 18.03.2019
The main newsmaker of the previous week was the British pound. There was a strong rise of the cable against major currencies on the Forex market. The British Parliament voted to rule out a “no deal” Brexit and requested to postpone the Brexit date beyond 29th March.
That’s why the weekly chart shows last week produced a relatively large, strongly bullish candlestick, which reached a new 9-month high, which is a bullish sign. This week is supposed to be volatile too because a lot of British news are expected including Bank of England interest rate decision and consumer price index. So, we will be waiting for the 1,34 as a minimum at the end of this week for GBPUSD pair.
In addition to the Brexit vote, this week will probably be dominated by the FOMC release and central bank input from the Swiss National Bank and the Bank of England.
EUR/USD climbed close to 1.0% last week, recovering most of the losses sustained a week earlier. The key events this week are German ZEW Economic Sentiment and German and eurozone PMI. Investors will also be keeping a close eye on the Federal Reserve rate statement.
From the technical point of view, the EUR/USD pair showed a shooting star pattern and we believe that the market is probably going to pull back towards the 1.1220 level before finding some buyers.
The Australian economy is showing signs of weakness, with analysts expecting a rate cut from the RBA. If the RBA minutes would indicate to worrying on the policymakers, the Aussie could lose some points. Moreover, the AUD/USD has been still showing a head and shoulders pattern on the 4 hours chart that, in the medium-term, signals a bearish outlook. In that case, we are awaiting the AUDUSD pair about the 0,70 point
From another point of view, in general, GDP data which is published by the Statistics New Zealand may have a positive impact on the oceanic currencies. So, the experts have been waiting for a stronger release than a previous one was.
Our targets for:
GBPUSD – buying to 1,34 EURUSD – selling to 1,1220 AUDUSD – selling to 0,70 in a long term period