FOREX CHART ANALYSIS AUG 4 - BEARISH SIGNALS
Now let's see if the charts at the beginning of August have anything interesting for us to work on.
- The US continues to sink deeply into the epidemic crisis. New cases of coronavirus infection continue to increase in regions, with July being the worst month for the number of cases since the beginning of the pandemic. In addition, White House coronavirus experts warned Sunday that the country was in a new phase of the outbreak.
- Last Friday, tens of millions of unemployed Americans officially lost $ 600 per person per week.
- The US dollar had a bad July with the biggest monthly decline in 3 years in the context of the US sinking into the disease and the new stimulus package could not be approved. This could lead to long-term damage to the world's No. 1 economy that kept the Fed able to keep interest rates low for years.
- Rescuing the worsening situation in the US, the ISM manufacturing index was in an expanded range and was slightly larger than expected (54.2 vs 53.6).
Price has completed a bearish pin bar pattern on the daily chart around the confluence zone 106.5. However, short orders at this time will face a big risk when the bearish signals on the H4 chart are not clear, combined with the relatively strong rally. You should think carefully.
Price went down after the expected declining signals. The first goal has also been approached. The short-term trend line has been broken, so you might consider keeping your orders. There are two cases in which we can add positions:
- When the price re-tested the trend line was broken and created a bearish signal.
- When the price breaks down the zone of 1.168.
There is not much to say about GBPUSD. Price is still moving as expected after the previous bearish signal. The MA20 line on the H4 chart has been broken. We continue to keep the short positions. The target remains 1.29 and the further is 1.28.
The price continues to accumulate and create an awkward whipsaw. The circular bottom pattern has no signal of completion. The downtrend line is still standing, so we have no signal to trade now. It is necessary to wait for prices to break above or below the borderline to determine the next direction.
The price has retracted after a false break of the resistance zone of 0.720 as expected, but the trigger price of 0.70 has not been broken, so we have not entered the short order. Let’s wait for more signals around this price area.