FOREX CHART ANALYSIS AUG 6 - EUR AND GBP
They say Thursday is the high time for trading, so today we still focus on analyzing the charts.
- The United States and China agreed to meet in mid-August to look at the first-stage trade deal they signed earlier this year.
- ING analysts said that "investors are continuing to pour money into gold-backed ETFs, which have increased by 820k an ounce last week, bringing the total holding up." a record 108.51 million ounces. The two main factors causing the increase in the price of gold are the weakness of the US dollar, and the very low interest rate environment, which means that investors will spend very little opportunity cost when holding gold.
- US non-manufacturing ISM data continues to show a strong recovery. However, ADP non-farm labor data is shocking with the number of new jobs created in July at only 167k compared to a forecast of 1.2 million, signaling a risky non-farm payrolls.
The price zone of 105.6 seems to be broken; However, the price action around this zone is very hesitant, plus the ratio of RR for short orders is not attractive. You should consider if you want to sell.
USD continued to weaken, pushing EUR/USD up and retesting the 1.190 level. Short trades are facing big risks, so we will abandon the view of selling completely when prices break below 1.190 (the uptrend will continue). Do not enter more commands at this time. Focus on observing the two marked prices.
Price action on GBP/USD is quite similar to EUR/USD. Price is re-approaching the peak of 1.317 after completing the bullish flag pattern. Activation area of new buy orders will be 1.317. If it breaks down, the price is likely to approach the zone of 1.328. The other possibility is to form a double peak. In general, it is necessary to wait for more forex signals of price action from the zone of 1.317 to determine the next direction.
The target price zone of 1.32 has been approached. You need to consider closing some short orders earlier. It is likely that the price will re-test the transition zone of 1.335. This is an opportunity for us to add a short position. In the medium term, we wait for the 1.32 trough to be broken to set a target of 1.30.
Price still respects the support levels but not the mid-long-term uptrend line and the MA20 on the daily chart. However, the upside force is an issue. Price seems to be accumulating rather than continuing the trend. Current conditions are not favorable for trading. Observe the price action at two margins to get the next conclusion.