Aug 25 2020 0

Today we're going to focus on the charts of the most traded currency pairs.

Latest updates

  • U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke to Chinese Vice Premier Liu He on Monday, both sides seeing progress on trade issues and a commitment to the deal. Phase 1, the US Trade Representative's office said in a statement.
  • President Donald Trump accused unnamed officials of delaying the US Food and Drug Administration's drug licensing process in order to prevent his re-election.
  • White House Communications Director Kellyanne Conway announced her resignation earlier this week citing family issues.
  • Brexit continues to struggle GBP as the EU warns that a Brexit deal is 'unlikely'. Michel Barnier, the EU's chief negotiator, also said last week that he was 'disappointed' with the UK's lack of serious commitment to securing a post-Brexit trade deal.
  • The double threat from the storms disrupted oil production in the Gulf of Mexico, down about 58%, to just over 1 million barrels a day.

USD/JPY

forex chart analysis USDJPY

The price fluctuated very low in the first session of the week so in general there was not much change. We continue to keep the old strategy, focusing on two resistance zones including:

  • Zone 106.2: If this peak is broken, it is likely that the price will continue its sideways trend in the short term and retest the resistance zone 107 above.
  • Zone 105: If it is broken, the sellers might consider entering an order because it is a sign that the downtrend will continue and the price might test the support at 104.

EUR/USD

forex chart analysis EURUSD

Price action is still beneficial for the sellers with the continuous appearance of bearish engulfing candlestick patterns on both the daily chart and the H4 chart. Those who have short orders can continue to keep their orders but remember to move Stop Loss to reduce risk. In case the price breaks through the 1.17 support zone clearly, we might consider entering new short positions. The target will be the next support zone around 1.16.

GBP/USD

forex chart analysis GBPUSD

The price continues to generate positive signals for the sellers and is heading towards the 1.30 mark. This is an important price zone that needs special attention. This can be seen as the last stop for the bulls. If it is penetrated, there will be a strong drop. You can consider short orders when there is a breakout signal. The initial target will be around 1.28.

USD/CAD

forex chart analysis USDCAD

The price failed to penetrate the support at 1.315, but bounced up very strongly and returned to the upper boundary of the newly formed narrow range. In the event of a breakout above this upper boundary, we will be stopped-out of the previous probe short. However, the opportunity for the sellers still exists because the main trend is still down. A less likely scenario is a price breakout of 1.315. Then, we can add short-term short positions.

AUD/USD

forex chart analysis AUDUSD

Not much has changed significantly on the AUDUSD chart. We still keep the old strategy. Range traders can maintain their short positions and move their Stop Loss. The rest should wait for the breakout signal and then consider entering orders.

author

Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.


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