FOREX CHART ANALYSIS AUG 21 - BE PATIENT
- The dollar was defensive against most currencies on the weekend after a surge in U.S. unemployment and a drop in bond yields reduced the attractiveness of holding. keep the green silver.
- The Fed warned that the government may have to step up its stimulus efforts to maintain the economic recovery, thereby directing public attention back to the Capitol, where the parties are still stuck in search. deal for a new economic bailout.
- The Belarusian Defense Minister - whose new government is backed by Russia - ordered missile, air defense and UAV units to reach the western border to oversee NATO operations.
- Sterling (GBP) struggled today despite reassurance from Downing Street that it hoped for a post-Brexit trade deal with the EU in September.
After breaking the false threshold and bounced up strongly around the 105.5 zone, the uptrend seems to be weakening. However, there is no noticeable signal for us to decide to enter. The current trend is not clear. Stay tuned and watch for price action in highlighted zones.
After many noticeable bearish signals, EUR/USD responded quite correctly to the MA20 on the daily chart, bounced back and is currently re-testing the 1.19 price zone around the MA20 on H4 chart that we mentioned earlier. Trend traders and reversal traders should not enter orders at this time. Range traders can consider selling in the short term. The target is to bottom the range. Place Stop Loss above the preceding top.
The rebound on the GBPUSD chart was stronger than on the EURUSD chart. Peak 1,325 is being re-tested. We still shouldn't trade the current price range. Instead, wait for breakout signals at the top of 1.325. The price could then approach new highs like 1.336 and further, 1.35.
The price showed a drop back around 1.327, which is earlier than expected. You can consider short positions to test first. Add positions when the price breaks down at the preceding bottom. The initial target will be the zone 1.30.
The price dropped and then recovered strongly after the bearish engulfing signal the previous day. Currently it has approached the MA20 on the H4 chart. This is a great price range for range traders to consider short orders. The target is the bottom of the range. Trend traders and reversal traders should continue to stay out.