Aug 12 2020 0
Today we move back to the charts. Let's take a look at them and find trading opportunities.
- The number of Covid-19 cases in the United States has fallen below 50,000 for the third consecutive day, reinforcing hope that the epidemic will be brought under control again.
- In Europe, Russia was the first country to approve the covid-19 vaccine but is accused of stealing intellectual property from US and EU pharmaceutical companies in research on covid-19 treatments.
- The next round of bailout measures for the US economy is still at a standstill, even though both the Trump administration and House Democrats have announced they are ready to resume negotiations.
- Germany's ZEW economic sentiment index rose to a 16-year high as expectations for a rebound were firmer than ever.
- President Trump's efforts over the weekend to break the parliamentary stagnation over the next bailout package will not help boost the economy much, experts say.
After many days of accumulating on the USDJPY chart, the range breakout signal has appeared. The price has now violated the mid-term downtrend line and the resistance level of 106.5 that we observed these days. However, this is the resistance zone with large amplitude and the breakout force is interrupted. Therefore, it is too early to consider buying. Wait for the price to completely penetrate the 106.7 zone then consider.
Prices recovered in the first half of the session. However, after that, the MA20 could not be surpassed and fell back to the support zone 1.17, creating more bearish signals. This is a good sign for the sellers. The possibility of price breaking the neckline and completing the double-peak pattern is very high. We keep the short positions and add more when there is a breakout signal. The short-term target remains around 1.16.
Price action on GBPUSD chart is similar on EURUSD chart. Price has added a bearish signal. What is special is that the two-vertex pattern we observed earlier is transforming into a more classic reversal pattern than the head and shoulders pattern. The selling faction is still favorable. Please continue to maintain the positions and add more when the price breaks the neckline - zone 1.30. Target is first 1.29 then 1.28.
The price broke the support line 1.333. You might consider returning to the downtrend and spreading short orders around the current price range. The target will be the previous bottom 1.32. Further is the lower bound of the channel.
Price does not change much, but still follows our calculations. It responds well to MA20 and uptrend lines. Please continue to maintain short positions. The short term target remains the bottom of the range.