Dec 10 2020 0
Towards the end of the week, there will be more important events potentially causing the market to fluctuate strongly. In today's session, pay more attention to EUR and GBP.
- BoC decided not to change the interest rate policy, as expected by the market.
- Despite the blockade, the US state of California still recorded a record high number of cases at 30,851 cases a day.
- German Chancellor, Angela Merkel, talked about the progress of the vaccine implementation in the near future, saying that there will not be enough vaccines in the first quarter.
- The dollar rebounded sharply in the past session, with growing confidence surrounding US fiscal stimulus and the rollout of vaccines making traders even more risky currencies.
- A UK government source said a deal might not be reached, while EU Brexit chief negotiator Michel Barnier also expressed the same opinion. Ireland showed that they are very pessimistic about the prospects.
The price is still accumulating in the familiar range and has not signaled yet to take advantage. The range of the triangular accumulation area is maintained. Tactics remain the same: we continue to observe marked resistance zones. In case it is broken, evaluate the target force and amplitude. Avoid trading when the RR ratio is too small.
The price continued to slide as expected. The 1.208 zone is also showing signs of being broken; however, it is still in a narrow channel with a bullish flag pattern - a pattern with an extremely high probability of winning according to Thomas Bulkowski, so it is advisable to enter only probes first and wait for further price action that shows selling pressure to add orders. The target is unchanged, still around 1.20. It should be noted that today's session is called Super Thursday for EUR, so you need to be careful when placing orders.
Price continues to fluctuate sharply around the marked range. Approaching the 1.345 margin was also rejected and produced noticeable bearish signals. However, the amplitude to the current bottom is still quite small, plus the news that Brexit may come unexpectedly should not encourage you to trade at this time. Only consider new orders when the price breaks out of the range and news of Brexit, especially when the price breaks out of 1.32.
USD/CAD is once again generating bullish signal upon retesting the low of 1.277. These signals continue to be favorable for the bottom fishing. In today's session, attention should be paid to the triple bottom pattern. If it forms, the possibility of going up to the zone 1.290 - 1.295 is very high. Bottom fishers can consider adding positions and moving Stop Loss. For anyone trading in a downtrend, there are still two price zones to ambush, including when the price breaks down to 1.277 or when the price retests 1.290 - 1.295.
The price continues to move up, breaking the previous high, but then retracts quickly and produces a bearish signal. And as warned, the current resistance is quite large, so it is difficult to determine a real breakout. Consider not trading AUD/USD at the moment.