Main trading ideas in the financial markets for 18.03.2019.
The main news creator of the previous week was the British pound. There was a strong increase in the cable against the main currencies in the Forex market. The British Parliament voted to discard a Brexit "without agreement" and requested to postpone the Brexit date beyond March 29.
That's why the weekly chart shows that last week produced a relatively large and strongly bullish candlestick, which reached a new high of 9 months, which is a bullish signal. It is assumed that this week will also be volatile because many British news is expected, including the decision on the interest rates of the Bank of England and the consumer price index. Therefore, we will be waiting at least 1.34 at the end of this week for the GBPUSD pair.
In addition to the Brexit vote, this week will likely be dominated by the launch of the FOMC and the contribution of the central bank of the Swiss National Bank and the Bank of England.
The EUR / USD rose close to 1.0% last week, recovering most of the losses suffered a week earlier. The key events of this week are the German economic sentiment ZEW and the German PMI and the eurozone. Investors will also be alert to the declaration of the Federal Reserve rate.
From a technical point of view, the EUR / USD showed a shooting star pattern and we believe that the market will probably fall back to the 1.1220 level before finding some buyers.
The Australian economy is showing signs of weakness, and analysts expect a rate cut of the RBA. If the RBA report indicated concern for political decision makers, the Australian could lose some points. In addition, the AUD / USD still shows a head and shoulders pattern on the 4-hour chart, which indicates a bearish outlook in the medium term. In that case, we are waiting for the AUDUSD pair on the 0.70 point
From another point of view, in general, GDP data published by Statistics New Zealand can have a positive impact on ocean currencies. Then, experts have been waiting for a stronger release than the previous one.
Our objectives for:
GBPUSD – buying at 1.34
EURUSD – selling at 1.1220
AUDUSD – selling at 0.70 over a long term period