EURUSD and NZD Signal Strategies

The US Dollar came under pressure on Friday as Fed members’ remarks, suggesting global growth is slowing down. It was interpreted by the market the Fed may not continue its rate hikes, which lead to a weak USD.

GBP weakened last week against a basket of currencies as UK ministers began resigning over Theresa May’s brexit plan. There were reports a no-confidence vote may take place on Tuesday but at the time of this writing there are insufficient letters to the 1922 committee.

Reports that a trade deal will be made between the United States and China contributed to USD weakness on Friday and the corrective gains in the leading indices. It is still too early to suggest a trade deal will indeed be sealed.

Last week we discussed that we were monitoring both EURUSD and NZDUSD. As NZD is expected to gap lower at the time of this writing we are uncertain whether we could initiate the trade without incurring some drawdown due to the gap.

EURNZD Daily Chart

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EURUSD and NZD Signal Strategies

EURNZD Daily Chart 18/11/18

GBPNZD Daily Chart

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EURUSD and NZD Signal Strategies

GBPNZD Daily Chart 18/11/18

AUDNZD Daily Chart

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EURUSD and NZD Signal Strategies

AUDNZD Daily Chart 18/11/18

The above potential entries in NZD are associated with high risks. Although there are early indications for NZD weakness we are lacking a firmer indication that imminent NZD weakness is due. The only entries that we may consider after the opening of the Forex market are AUDNZD and GBPNZD.

NZDUSD Friday’s daily close was too high, we are favouring the crosses should we opt for NZD.

EURUSD Daily Chart

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EURUSD and NZD Signal Strategies

EURUSD Daily Chart 18/11/18

The recent gains in EURUSD may be sufficient to initiate a short trade as we were expecting another leg higher in the currency pair. Due to Friday’s daily close there is a risk for another leg higher although it is expected to be minor. We will have to determine whether wish to absorb the potential drawdown.

There is no guarantee that it will materialize but it must be anticipated.

EURUSD Trade Alert

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EURUSD and NZD Signal Strategies

EURUSD Daily Chart II 18/11/18

EURUSD short at market price (bid 1.1413)
Take profit: 1.1115
Protective stop: 1.1565
Risk Ratio (RR): 1: 2.0 (approx.)
Estimated duration: 21 days

Relevant as long as EURUSD is above 1.1380

Note: There is a risk for some drawdown as discussed in the weekly update. The reason why we are choosing to absorb the potential drawdown is because it is not guaranteed to materialize. The entry is combined with the weekly chart.

In an event EURUSD will correct lower without a minor leg higher the price may reach 1.1310 within the next 24 hours. The potential drawdown is re-test of 1.1470, the latter resistance is seen at 1.1525.

19/11/18 SIGNAL UPDATE: Remarks that the euro zone’s GDP may be little affected in an event the UK exits the EU without a deal kicked EURUSD higher.

On 21 November the EU is expected to reply to Italy’s modified budget, which may trigger some volatility across EUR pairs and crosses.

23/11/18 SIGNAL UPDATE: EURUSD traded lower following economic data from the euro zone. The dip paved the way for potential corrective gains, which we are unwilling to incur should they materialize.

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EURUSD and NZD Signal Strategies

EURUSD Daily Chart 23/11/18

EURUSD is trading at 1.1352 at the time of this writing, we are closing the short trade at market price.

All of the above trade updates on this page were issued via email to our members.