FOREX CHART ANALYSIS AUG 5 - TRADING OPPORTUNITIES
The charts look really promising today with a lot of trading signals. Check them out below.
- Top White House officials and Democratic leaders in the US Parliament renegotiated on Tuesday to narrow the difference in a new bailout package to stimulate the economy and support the unemployed. However, there has been no information on the significant progress.
- WHO Director-General Tedros Adhanom Ghebreyesus warned on Monday: “Some vaccines are currently in phase three clinical trials and we all hope to have some effective vaccines available. can help prevent people from becoming infected. However, we do not have it now and may never have it! ”
- The European Central Bank (ECB) is committed to supporting the eurozone economy in the context of a coronavirus pandemic. They will use huge bond purchases as their main tool, chief economist Philip Lane said on Tuesday.
- The tone surrounding Microsoft's acquisition of TikTok is becoming increasingly belligerent, with moves threatening to become the start of a larger technology war.
After the bearish signal around the MA20 on the daily chart, the price has accumulated and is trending down. Today we will pay attention to observe the zone 105.6. This is the bottom of the previous bearish pin bar pattern and also the MA20 line on the current H4 chart. If it is clearly broken down, you can consider short commands. The target will be the previous bottom. The reversal traders only consider long orders when the price breaks the channel and crosses the area of 106.7.
The price failed to penetrate the support of 1.17 and bounced up afterwards. In the short term we will be wary of the possibility of forming a head-to-shoulder reversal pattern (when prices fail to make a new higher high). Then, the trigger point would be the price zone of 1.17. Currently you can still maintain short orders. Stop Loss should be placed close to the top of 1.19.
The situation seems to be gradually detrimental to the sellers when the price could not fall as quickly as expected, instead of accumulating the normal flag pattern. Today we will maintain the previous short orders. Pay attention to the MA20 line on the H4 chart, flag pattern and especially the area of 1.316. If this zone is broken, we will give up the current short orders.
What we have been waiting for many days has come: the price has broken the lower border of the range. This price action can trigger a series of stop loss orders and buy orders as well as add sell orders. You may consider short from this price range. The short-term target will be zone 1.32.
Price did not penetrate the support of 0.706 but rebounded. The uptrend is still considered to be ongoing; However, when the uptrend line is violated, we need to be alert of the possibility of forming a head-and-shoulder reversal pattern. Avoiding current price ranges. Only consider the order when one of the two prices marked (dashed) is broken.