FOREX CHART ANALYSIS AUG 13 - TIME TO TRADE
Thursday means trading time. Let's check out the charts and see what we should do today.
- San Francisco Fed President Mary Daly said the recent expiration of the $600 a week unemployment benefit could impact families and the economy as a whole as it eliminates the income used to pay rent, groceries and other debt.
- The dollar hit a two-week high, US 10-year Treasury yields also hit their highest in more than a month, while Gold Futures stabilized after falling 5% on Tuesday, ahead of a major US bond auction.
- Democratic presidential candidate Joe Biden has chosen California Senator Kamala Harris as his candidate, a move that appears to increase support among women and ethnic minorities. It also sparked speculation that the Democratic administration could avoid confronting tech giants like Facebook, Amazon and Alphabet over the issue of antitrust.
- The UK economy fell more than 20% in the second quarter, the highest level of any major industrialized economy, and it also made the UK economy officially enter a technical recession after 11 years.
The price broke an important resistance zone and temporarily established a new bullish structure. However, the worrying thing was that the buying force was not completely overwhelming and somewhat hesitant. Therefore, for the current price we should only enter prospective buy orders. When we see the bulls get stronger, we can add positions. The short-term target will be at 108. In case the price suddenly falls and penetrates the upside channel and the MA20, we will abandon the strategy of buying.
The sellers once again fell to the confluence zone of 1.17 after many previous tests, leaving us unable to add short positions and waiting. Today's session we will pay more attention to the price of 1.18. If it is broken, it is likely that the price to the upper boundary of the range increases.
Without a strong bounce like EURUSD, the price above GBPUSD showed signs of breaking the neckline of the shoulder-head-and-shoulder reversal pattern that we are observing. But note that the critical support 1.30 has not been broken yet so we have not added a short position yet. Please wait patiently for a breakout signal from this zone. The target remains at 1.29 followed by 1.28.
Short orders when the retest price is at 1.335 are making very good profits. Initial target 1.32 has also been approached. You should consider partial exit and moving your Stop Loss to minimize your risk. In case the price breaks out of this support, the target could be raised to the zone of 1.30 or the lower boundary of the descending channel.
The price has not yet approached the bottom of the range as expected but bounced back. If you have moved the Stop Loss of short orders around the MA20, you are facing the possibility of a stop-out. We should not continue to trade AUDUSD for the time being since the price action is not backing the old one. Wait for the next signal. Note the 0.719 price range. If it breaks, there is a possibility that the price will retest the range top.