DEC 23 CHART ANALYSIS: CHRISTMAS IS COMING
The first thing you should do at the beginning of the week is checking on some news. Knowing all this, you can apply the appropriate forex trading strategies.
GBP ended the week with the sharpest decline since the flash crash earlier in 2016.
Mr. Johnson's conservative party has initially approved the draft Brexit in the House of Representatives with a vote of 358 yays/ 234 nays. This draft Brexit will continue to be reviewed at the next stages.
The Japanese government on December 20 approved a record budget of $939 billion for the upcoming fiscal year, amid an effort to balance demand to boost growth and manage debt burdens. the heaviest public in the world.
On December 20, China said it would be more active in supporting traditional manufacturing enterprises to overcome difficulties next year, in addition to promoting lending to real estate companies. exported by greener and smarter criteria.
The UK economy grew at 0.4% in the third quarter, better than the estimate of 0.3% and was driven by an upward revision of services and construction output.
JPY is also a collateral like gold, so on the daily frame of USD/JPY, we also see a huge rising wedge pattern, but it is still quite early to talk about its completion. Looking back on H4, we can see the price is hovering in the middle of the channel so it is not convenient to trade. Keep waiting and watch how the price responds if it approaches either channel.
The target of the zone of 1.108 has been approached, you should consider exiting the short order before. As a warning, this is a strong confluence zone, so a correction might appear then it can continue to go down, the fulcrum could be the MA20 on H4.
It looks like the situation has changed for GBP/USD, bearish signals appear everywhere. The first is the bearish engulfing pattern on weekly, MA20 on daily break, and falling structure on H4 formed. Therefore, we will also change the direction of the transaction, namely short. However, the zone of 1.30 is a noticeable resistance area, we only trade when the price rebounds in this zone or it is really breakout.
As warned, due to the price moving too far from the MA20 on daily chart, the probability of being "pulled" is very high, the price increases sharply at the end of the week and the breakout of the declining wedge model, but the trend before this model. is not long and strong enough so it is unlikely that the price will continue going up strongly. In the short term, we only expect prices to approach the 1.32 zone.
The price continued going up in the last trading session of the week but the force was not strong. The situation has not changed. The target of 0.693 is still holding. Let’s expect prices to approach this area and a certain correction appears.