EURUSD Long, Profit Taken On USDCAD Short

Chinese President Xi Jinping pledged on Tuesday to further open China's economy and cut tariffs this year, in a speech seen as an attempt to defuse an escalating trade dispute with the United States.

The pound rose to a two-week high on Tuesday after the dollar fell and a top policymaker said the Bank of England should press ahead with an interest rate hike to curb inflation.

We took profit on USD/CAD short today. In our opinion, medium-term outlook remains bearish and we will be looking to sell this pair again on upticks.

This is how my trades were today:

EUR/USD

Trading strategy: Long

Open: 1.2220

Target: 1.2470

Stop-loss: 1.2140

Recommended size: 2.50 mini lots per $10,000 in your account

Short analysis: The EUR/USD rallies through the 55-day SMA. A new short-term high is set on the rally's extension. Further gains are likely. RSIs are biased up and the pair holds above the daily cloud as well as 10, 21 & 55-day SMAs. Our long opened at 1.2220 looks good now, the target is 1.2470.

GBP/USD

Trading strategy: Long

Open: 1.4010

Target: 1.4270

Stop-loss: 1.3900

Recommended size: 1.36 mini lots per $10,000 in your account

Short analysis: Bullish trend remains intact here. The pair remains above short-term moving averages. The nearest resistance area is 1.4247/81 and our long’s target is at 1.4270.

USD/JPY

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: The dollar rose on Tuesday to a four-day high against the Japanese yen after Chinese President Xi Jinping promised to cut import tariffs, easing concerns about a U.S.-China trade conflict between that had fed safe-haven demand for yen. Trading signals are mixed. We will wait for clearer signals before opening a new position here.

USD/CAD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: Profit taken at 1.2600 on USD/CAD short opened at 1.2900, earned: 300 pips and $410 per $10,000 in your account. In our opinion medium-term outlook remains bearish and we will be looking to sell USD/CAD again on upticks.

AUD/USD

Trading strategy: Long

Open: 0.7660

Target: 0.7880

Stop-loss: 0.7555

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

Short analysis: Pair lifts further above the 21-day SMA and sets a new short-term high. Daily RSI deepens its bull bias and the monthly RSI is now turning up. Our AUD/USD long is in good shape.

EUR/GBP

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: New short-term low is set to keep bear sentiment intact. Doji forms on daily chart so a bounce is possible.