Dec 15 2020 0
The openning sessions have given us many clues and clearer signals telling us what we should do. Let's analyze the charts to see what they are.
- Investors left the dollar bunker earlier this week as traders hoped that the US Parliament would finally agree on a fiscal stimulus before the Fed conducts its final session of the year. this week.
- According to EU statistics agency, industrial production data is starting to accelerate again and positive data revisions are good news for the EU's Q4 economic situation.
- Oil prices climbed higher earlier this week as markets believed the vaccination rollout could boost US demand for oil.
- UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed at the weekend to resume negotiations, removing the previously self-imposed deadline (Sunday), which continues Raising hopes for the market for a UK - EU trade deal.
The price has approached the lower boundary of the narrow range area, the 103.6 zone. However, the price could not break this zone and created a false break, a bear trap. Currently, strong bullish patterns appeared on both the H4 and the daily chart. Sideways traders may consider buying. The price target is set around 105. 105 is also a strong confluence zone that anyone following a downtrend can initiate a sell under the current major downtrend.
The price still shows a struggle between the buying and selling sides around the 1.215 peak. We continue to maintain the strategy we mentioned yesterday. If the price breakout above triggers the bullish flag pattern, buy trend following orders can be considered. If the price breaks below the lower boundary, which forms a Double Top pattern, then reversing traders can consider short orders. In addition, it should be noted that the fact that the price continuously retest the 1.218 peak in a short time is a sign that selling pressure is not large and the possibility of a breakout of this price zone is getting higher and higher.
Prices continued to rise after the up-gap. It only stopped after approaching the short-term trendline around 1.34. Note that the gap has not been filled at the moment, combined with a new bearish structure, the possibility that prices will continue to decline is still relatively high. You might consider short-term orders with possible targets at around 1.30-31. Again, the Brexit event is coming to an end, so you should lower your volume and trade with a wide Stop Loss to avoid being Stop out.
The price decreased after re-testing the conversion zone but was unable to penetrate the 1.27 price range and rebounded. However, this doesn't have much of an effect on our tactics. You can continue to hold existing short orders.
Price made a new upbeat rhythm after creating the pin bar pattern on the daily chart. However, no new breakout occurred. Instead, another bearish pin bar pattern appeared on the daily chart accompanied by a two-peak formation on the H4 chart. Today, we focus on the 0.752 price range. If it is broken, the models are complete and activated. Short-term reversal traders may consider short orders to the 0.740 - 0.745 price range.