FOREX CHART ANALYSIS APR 16 - CHANGE OF PLAN
The USD had big changes yesterday which led to a series of movements of the currency pairs. Let’s get updated and then choose the most suitable forex trading strategies.
- USD and the haven haven are being bought back after the market sentiment went down with very bad US retail and manufacturing data.
- Oil prices slumped again after the International Energy Agency (IEA) warned that a recent global supply cut deal would not be enough to prevent a shortage of storage space due to oversupply. Worth mentioning, they warned this would come "in a few weeks".
- The European Union's next long-term budget should be used to fund economic recovery after the coronavirus pandemic, the head of the Brussels-based organization said Wednesday.
- According to Standard Bank, EURGBP could return to 0.8 - the level not seen since the UK voted to leave the EU - even further. The covid-19 pandemic, they say, could make the previous deadline for reaching a trade agreement between the UK and EU more likely to be rescheduled, helping to delay the risks for GBP or even boost the UK. Looking for deals that are more beneficial to me.
USD/JPY bounced up from the 107 zone as expected after a weak bullish pin bar signal. And as suggested, ranging traders can trade in this region. Pay attention to the 108 zone. The price can only approach the upper boundary of the range if this zone is broken out strongly.
The tentative command failed when level 1.10 again rejected buying. For EUR/USD, we once again return to "standby" mode. And with newly appearing bearish signals, attention should be paid to the 1.085 area. If this confluence is broken, the price could easily test the next two bottoms.
GBP/USD made a huge difference after yesterday: The predominant buyers now face danger. The MA20, the uptrend line and the top of the flag pattern have all been broken. We suspend all buy orders and consider returning to sell in the short term. Especially when the broken line is broken, the price can test the bottom of 1.22.
As we have warned of weakening selling pressure and the bulls' ambush in the zone of 1.378, hope you escape in time. We are temporarily closing our sell orders. With the current strong bullish pattern and the bullish (mid-long-term) bullish pattern forming, we should consider switching to buy orders. A reasonable entry point is when the price tests the MA20 with a rising signal.
For AUD/USD, after recommending you to preserve your profit at 0.645, the price has plummeted to 0.63. The bullish signal has not appeared in this confluence so we do not add any positions. It is likely that the price will keep going down. Wait at the next resistance zone is 0.62. Price action in this region will determine whether we will return to the previous upward momentum.