Profit Taken On EUR/USD Short

The ADP national employment report on Wednesday showed that U.S. private sector payrolls increased by the most in eight months in October, suggesting overall job growth accelerated this month after Hurricane Florence weighed on restaurant and retail employment in September. The U.S. Federal Reserve increased interest rates in September for the third time this year and is expected to raise rates again in December.

The EUR/USD fell despite higher-than-expected inflation data from the euro zone. Eurozone inflation rose to 2.2% in the year to October, up from 2.1% the previous month. October's rate is the highest since December 2012, when inflation was also 2.2%.

The Canadian dollar edged lower against its U.S. counterpart on Wednesday as the greenback broadly climbed, offsetting data that showed a surprise strengthening of the domestic economy in August.

Trading strategies:

EUR/USD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: A new short-term low is set and RSIs are biased down. A break of the 2018 low seems likely. Daily RSI studies are near oversold so any deepening of the slide might be a grind.

GBP/USD

Trading strategy: Buy

Open: 1.2730

Target: -

Stop-loss: 1.2650

Recommended size: 1.88 mini lots per $10,000 in your account

Short analysis: Brief drop under 1.27 Tues to 1.2697 low. Month-end buying and talk of Brexit deal progress from UK's Raab boosted GBP/USD to 1.2831 flashes high on Wednesday, before settling in mid-1.27's. Key support 1.2662 Aug 15 low. We have placed a bid at 1.2730, high-risk counter trend play.

USD/JPY

Trading strategy: Buy

Open: 112.35

Target: -

Stop-loss: 111.60

Recommended size: 2.91 mini lots per $10,000 in your account

Short analysis: USD/JPY's bullish charge halted by the 113.34 Fibo level, a 61.8% retrace of the 114.55 to 111.38 October fall, a break and daily close above which will accelerate. Monday and Tuesday saw the third and second biggest one-day gains of October, reinforcing the bullish potential. We are looking to get long on dips, as the rising daily cloud (111.48-112.00) props.

USD/CAD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: USD/CAD remains capped ahead of upper 21-d Bolli now at 1.3186. Stoch's and RSI's drifting higher and widening Bolli's hint at possible pick up in volatility in near-term. Bulls have the upper hand above the 21-DMA by 1.3034.

AUD/USD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: The October 26 bull hammer candle is still valid and the pair trades near the 10- and 21-DMAs. The pair holds below the 76.4% Fiob of the 2016-18 rally and monthly RSI is biased down. Signals are mixed so we will stand aside. A break of October's high and 2018 downtrend might see us try to get long at some point.

EUR/GBP

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: Pair's time above the 50% Fibo of 0.9098-0.8723 was short lived and the 200-DMA is neared again. A long lower wick remains on October's candle though which suggests bears are losing traction. We lean bullish but signals remain mixed. We will stand aside for now but might look to buy a dip soon.