EUR/USD Long At 1.1905, EUR/GBP Long In Progress

The Bank of England held interest rates on Thursday and said weak growth during a snowy start to 2018 was likely to be only temporary, but it wanted to see a pick-up in the economy in the next few months before raising borrowing costs. In our opinion a rate hike in August is likely.

U. S. Labor Department said its Consumer Price Index rose 0.2% after slipping 0.1% in March. Excluding the volatile food and energy components, the CPI edged up 0.1% after two straight monthly increases of 0.2%. The market had forecast the CPI rebounding 0.3% in April and the core CPI climbing 0.2%.

This is how MyFXspot.com trades today:

EUR/USD

Trading strategy: Long

Open: 1.1905

Target: 1.2150

Stop-loss: 1.1795

Recommended size: 1.82 mini lots per $10,000 in your account

Short analysis: EUR/USD trend is reversing after U.S. CPI data. EUR/USD bears failed to reach the target at 1.1790 Fibonacci level, 76.4% retrace of the 1.1555 to 1.2555 (November to February) rise. We opened long at 1.1905 for 1.2150.

GBP/USD

Trading strategy: Long

Open: 1.3530

Target: 1.3850

Stop-loss: 1.3390

Recommended size: 1.43 mini lots per $10,000 in your account

Short analysis: Bearish momentum is fading as price consolidates around the 200-day MA pivot. A series of doji candles highlight market indecision. Wednesday's doji plus bullish confirmation today would open up a larger pullout of the underlying bear trend. The reaction today’s BoE decision was muted, which also suggests that bearish move is coming to an end. We opened long at 1.3530.

USD/JPY

Trading strategy: Short

Open: 109.25

Target: 110.35

Stop-loss: 107.00

Recommended size: 1.49 mini lots per $10,000 in your account

Short analysis: USD/JPY bulls remain focused on the recent 110.05 peak, a break above which will unmask the key 200-day SMA at 110.19 and the important 110.24 Fibonacci level, 61.8% retrace of the 113.75 to 104.56 fall. Fourteen-day momentum remains positive, reinforcing the upside bias. On the other hand, another failure to break above the 110.05 level could be a sign of trend reversal and we think the second scenario is more likely now.

USD/CAD

Trading strategy: Sell

Open: 1.2905

Target: -

Stop-loss: 1.3010

Recommended size: 1.83 mini lots per $10,000 in your account

Short analysis: USD/CAD firm with oil after US exits Iran deal. The pair moves lower, back within daily cloud. We have placed a sell order at 1.2905.

AUD/USD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: Pair sets a new trend low to keep the overall bear trend intact. Pair bounces and turns up on the day. Daily RSI diverges and a long lower wick forms on the daily candle. A correction in the bear trend is possible.

EUR/GBP

Trading strategy: Long

Open: 0.8780

Target: 0.8960

Stop-loss: 0.8690

Recommended size: 1.22 mini lots per $10,000 in your account

Short analysis: Today's rally is negating much of this week's 0.8836-0.8728 drop. A close above 14-day exponential moving average (0.8779) could be pivotal and would be a good sign for our long trade.