FOREX CHART ANALYSIS APR 9 - FASTEN YOUR SEATBELT
Today can be said to be the most turbulent session of the week with the focus of OPEC + meeting on oil prices and some economic data released. So buckle up and get ready to change your trading strategies.
- Crude futures rose earlier today on expectations that the world's largest oil producers will agree to cut output at a meeting later in the day.
- President Trump said he wanted to reopen the US economy with a 'big bang'.
- Demand for the USD returned on Wednesday as investors once again sought refuge after the disappointing news surrounding the Covid-19 epidemic once again worsened.
- The situation in the common currency area continues to be confused with many unsolved issues, the most significant of which is the issue of joint debts. Germany and several other countries are opposing calls from Spain, Italy and France. The meeting has been suspended and will continue on Thursday.
- The confidence of Japanese traders has never been so low as it is now. A survey measuring people's spirit has also been lower than the time of the 2011 tsunami or the global financial crisis of 2008.
USDJPY does not have many changes. Price is still around the neck-line of the double bottom pattern. The accumulation is too long showing the indecision of the buying side and reducing the possibility of going up. However, it is not enough for us to give up the long command. The target is still the 110 area. Also, any neck-line breakout could pave the way for declines to the bottom of 107. Note this.
Not much has changed on the EURUSD chart. Price is still stuck between the MA20 on the daily chart and the H4 chart. Besides, there is a large triangle pattern on the H4 chart. The signals are conflicting and unclear, so we shouldn't trade. It is important to look closely at confluence areas with two trend lines.
On the GBPUSD chart, the upper band of the rising flag has been broken. However, it cannot be called a model completion (dashed lines still exist). Therefore, we should not buy at this time. Nor does it exclude the possibility that price will retreat at the resistance area of 1.250. In general, price action in this region will determine our reaction.
USDCAD is still on the right track. It did not fluctuate much yesterday as it waited for news to come out today. Currently the price action is still supporting us. The bottom of 1.40 has been approached again. Those who are holding 'short' should consider exiting the orders partially. The rest of the orders should target zone 1.38.
Price has not been able to return to its bottom as expected. Instead it is making very noticeable changes. The 0.62 peak was broken and established a higher and higher top structure. Therefore, it is likely that prices will continue to go up. Our view changes. Buying orders should be considered. The risk now is that the breakout force is not strong enough.