Yesterday, President Trump continued to shake-up his administration by replacing Secretary of State Rex Tillerson with CBI director Mike Pompeo. Even before this most recent move, the turnover rate among high-level staff and cabinet members has been higher than under any other president in the past 40 years. As a result, political uncertainty remains elevated.

On the economic front, U.S. retail sales data on Wednesday did not really help the dollar. Retail sales fell, offsetting a stronger-than-forecast rise in domestic producer prices last month
After the European Central Bank dropped a long-standing pledge last week to increase its bond buying if needed, investors are looking for clues to its next move. ECB President said today: "There is a very clear condition for us to bring net asset purchases to an end: we need to see a sustained adjustment in the path of inflation towards our aim."

This is how we trade today:

EUR/USD

Trading strategy: Long

Open: 1.2330

Target: 1.2580

Stop-loss: 1.2210

Recommended size: 1.67 mini lots per $10,000 in your account

Short analysis: Our long remains but progress is difficult. The pair's latest rally was capped by the trend-line off February's high. The ensuing slide has daily RSI now biased down. We do see encouraging signs though. The 10 and 21-day SMAs limit the downside and monthly RSI is biased up.

Previous position: Short opened at 1.2300, profit taken at 1.2180, earned: 120 pips, $328 per $10,000 in your account.

GBP/USD

Trading strategy: Long

Open: 1.3780

Target: 1.4100

Stop-loss: 1.3640

Recommended size: 1.07 mini lots per $10,000 in your account

Short analysis: Daily momentum remains positive. The 7-day EMA is going to break above the 14-day ema, which would be a strong bullish signal. We remain long for 1.4100.

Previous position: Short opened at 1.3930. Profit taken at 1.3770, earned: 160 pips, $301 per $10,000 in your account.

USD/JPY

Trading strategy: Sell

Open: 106.65

Target: -

Stop-loss: 107.50

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

Short analysis: We have placed a sell order at 106.65. The USD/JPY is currently capped by the 107.17, 23.6% retrace of the 113.38-105.26 fall and 107.29, daily high on March 13. A close below 106.00 would energize the bear trend.

Previous position: Short opened at 106.20. Stop-loss hit at 107.20. Lost: 100 pips, $150 per $10,000 in your account.

USD/CAD

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: The USD/CAD drifts higher on lingering trade uncertainty and dovish-leaning BoC. The resistance is at 1.2976 Wednesday's high then 1.3002 the 2018 high on March 7. Bulls remain in control above 10-DMA (1.2892). Below 10-DMA and recent trend low at 1.2804 shifts control to the bears and puts double bottom by 1.2614 (February 23/26) in sharper focus.                      

Previous position: Short opened at 1.2825. Stop-loss hit at 1.2915, lost: 90 pips, $150 per $10,000 in your account.

AUD/USD

Trading strategy: Long

Open: 0.7805

Target: 0.8010

Stop-loss: 0.7705

Recommended size: 2.00 mini lots per $10,000 in your account

Short analysis: The AUD/USD cannot sustain gains above the 0.7893, the 38.2% retrace of 0.8136-0.7500. A close above that level would be an important bullish signal. Our long remains and is in good shape.

Previous position: Short opened at 0.7845. Profit taken at 0.7785, earned: 60 pips, $180 per $10,000 in your account.

EUR/GBP

Trading strategy: Long

Open: 0.8880

Target: 0.9010

Stop-loss: 0.8815

Recommended size: 1.12 mini lots per $10,000 in your account

Short analysis: Our long remains but it struggles to make progress. The pair is testing support level at 0.8850. A close below that level would put our long under pressure.

Previous position: Short opened at 0.8790. Stop-loss hit 0.8830, lost: 40 pips, -$100 pips per $10,000 in your account.