• Trade Now

Remain Short EURUSD, EURGBP; Pending Long USDCHF and GBPUSD

Written by Guest content
Rate this item
(0 votes)

Contributed by: DailyFx

Next week will be critical for the EURUSD as the pair stands at the crossroads as of late. Indeed, price action is capped by 1.40, and after the break below the rising channel, which remained intact for approximately a month, my bias remains to the downside. Taking a look at the weekly chart, the EURUSD looks poised to close above the 200-day moving average for the third street week, and if price action holds above this level next week, this could spell trouble for the greenback in November. Not to overlook, the pair has stalled at the 50-day SMA on the monthly chart. All in all, downside risks remain so long as price action does not close above 1.40. The FOMC rate decision and the Nonfarm payrolls release from the world’s largest economy next week may serve to be the catalyst needed for the buck. At the same time, I am still short the EURGBP and my position is currently in the money. Going forward I will look to target 0.8650 as technical indicators continue to point to further losses in the pair; stop at 0.8830. GBP traders will shift their focus to the U.K. interest rate decision and asset purchase target.

Going forward, I will look to enter a long GBPUSD position on a break and close above 1.600. The BoE rate decision is on tap and may serve as the next push for British pound as the pair bounced off key support at 1.5600. Meanwhile, a long USDCHF position is on the horizon as the price action has worked its way into an ascending channel, and now looks poised to test parity next week. With reference to the AUDCAD, I closed out my position slightly out of the money as the pair will close below the 20-day moving average. Taking a short position at today's close, with a target of 0.9860 may suffice. Good luck trading!!!

Add comment

Currency converter


Which is the Best Forex Broker you have traded with?

Interview with Matthew Sheppard

Senior Forex Advisor at XForex

1. What is your name and position?

Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?

In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

3. What type of clients you deal with?

We deal with clients on all levels from the beginning stages to the more advanced trading levels.

4. Does most of your business activity come from the online or offline world?

Because of our high presence on the web, most of our business comes from the online world.

5. Why should a trader pick XForex from all forex brokers?

Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..

Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?

My advice to the beginning trader entering the Forex world is as follows:
  • Learn the market and understand what you’re getting into.
  • Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
  • Invest smartly and calculate your risks.
  • Always know when to get out of a trade.

Broker of the Month

5_small_logoUFXBank provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXBank traders can access the biggest market in the world 24 hours a day with ease.

By keeping their platform, site and deposit process simple, safe and secure, UFXBank have become the web’s premier online forex trader.