Vector Securities - Analytics

    Vector Securities

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    Here’s a new turn

    Here’s a new turn
    Now we don’t even know how to call this getting on nerves. For ten trading days euro has been stalling in two-figured range, changing direction constantly. Other currency pairs behaved scarcely better. Unexpectedly dollar came under pressure after publication of data on US trade balance yesterday. However, 15 % growth of deficit is a good reason to react somehow. 
    At Asian session, the decision of the Bank of Japan to leave monetary policy unchanged went practically unnoticed. It wasn’t a surprise, most players expect any steps not earlier than October 10. 
    Today there are no significant events in the U.S.A. There are few events in the Eurozone too. The most notable one will be industrial production in Germany. Still, we can’t promise that it won’t be enough to leave current range. Strengths have been accumulated too long, technical factors in the form of worked stops can be enough for breakthrough. Speaking of local events, it makes sense to pay attention to the data on British industrial production. Forecasts are positive. Taking into account that pound also stands before important level 1.5250, good statistics can facilitate upward breakthrough of the pair.
    Trade tactics:
    Yesterday’s regular sharp change of movement direction of EURUSD pair also changes preferences in view of current situation. Now more attractive option is upward breakthrough. Judging by market’s dynamics, more or less stable movement will appear only while exit from the range to one or another direction. The downside of such tactic is necessity to establish big stops – at borders of ranges. The most preferable option for today is purchase of EURUSD under breakthrough of 1.1300, stop at 1.1140. British pound at breakthrough 1.5260 is also interesting for purchase, stop at 1.5130. In case of currencies’ growth of more than 30 points from the entry point, rearrange stop at the entry point. 
    Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 

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