Dec 01 2020 0
The first session of the week and also the end of the month yesterday had remarkable changes. But first, some quick updates on the financial market:
- The dollar fell lower at the start of European trading on Monday as vaccine optimism persisted and expectations of the Fed to loosen in the following month prompted traders to gradually leave the USD bunker.
- The UK and the European Union warned each other earlier this week that the time for a trade deal was running out, as the main contradictions were still unresolved with only a month left.
- Finacial Times said that the UK could approve the vaccine as early as this week, and could be the first Western country to do so. The first injections are likely to be as soon as December 7, the FT adds.
- The BoE noted two factors that could drive inflation higher than expected.
The price failed to hold below 104 and bounced back when approaching the short-term uptrend line. However, the signals are not strong enough for us to take advantage of trading. We continue to watch and wait. Two important price zones to watch out for include resistance around 105 and support around 103.7. Price action around these two zones can provide the necessary clues.
The price has followed our scenario: selling pressure around the 1.20 peak is causing prices to drop sharply. This price rejection produced bearish signals on both the H4 and the daily chart. Hope you guys got rid of the long orders in time as recommended. Now is the time for you to trade short-term reversal. The initial target will be around 1.190. Price action around this zone will reveal the next direction of price.
The price is still continuing the rounding top pattern around the price zone of 1.34. There are no new signals, so we keep the old view: expect the price to retest the 1.32 zone soon. However, the signal is not strong enough and the RR ratio is not good, so it is discouraged from trading these market conditions.
The price has approached the bottom for many years, the area of 1.290. The buying force around this price zone created bullish signals on both the H4 and the daily chart. The most remarkable thing is the dragonfly pattern on the daily chart. Reversal traders can use these signals to consider trading upside. Looking further, attention should be paid to the possibility of Double Top pattern. The above tactics will be removed when the 1.290 zone is officially penetrated.
The price also pulled back from the 0.740 zone as warned. Hope you guys can get rid of the previous long orders. Currently, bearish signals are simultaneously appearing on both the daily and the H4 chart. This is the time for you to trade short-term reversals. The initial target could be around the lower boundary of the upside channel.