Dec 19 2019 0
GBP, JPY and AUD are all fluctuating strongly because of the current sittuation. We must asset the charts quickly and develop the appropriate forex trading strategies.
- GBP was under pressure because some reports in the UK said Mr. Boris Johnson would change the law to ensure that the transition period between the UK and EU would end as scheduled on December 31, 2020. This means that the two sides will not have much time to reach a trade agreement leading to economic shock after "the divorce".
- English inflation shows stability but it is difficult to change the interest of the market which is focusing on Brexit.
- The Japanese government today raised its growth forecast for the fiscal year starting in April 2020 to 1.4% (from the previous 1.2%).
- Swiss National Bank President Thomas Jordan in an interview with Blick said that they could not rule out CHF's ability to continue lowering interest rates, which have the lowest interest rates in the world.
JPY is showing the weakening, the pennant price compression zone has come to an end, waiting for a breakout upward. this possibility is relatively high. However, the amplitude from the breakout point to the next resistance is not much. We should not open long positions. Instead, reversal traders can wait for the opportunity to sell in the 110 area.
After confirming the bearish signal yesterday, EUR/USD has gone down as expected. Today session continues to hold the view to decrease and hold entered orders. You can move the Stop Loss to reduce risk. The target price is still around 1.108.
The decline has been blocked at the confluence of the MA20 line with the trend line on daily charts. However, the uptrend signal is not convincing enough. So, buying at this time is still relatively risky. More careful traders can wait for the price to come back to the 1.30 area. This is a favorable buying area, but do not forget to set the Stop Loss in all cases.
The bullish signal on the daily chart failed when the price returned to the lower boundary of 1.312. This is also the confluence area. However, the downward momentum is very strong, so we will temporarily not trade in this price area. We need to observe and wait for more.
The AUD/USD chart is showing significant changes. The price did not retest the 0.687 zone. The trend after the doji candle can be clearly seen on the daily chart. It is in a sensitive area. There is a possibility that it will retest the trendline. If that's the case, the AUD could rise in the medium term. On the H4 frame, the upward channel is still maintained after falling at the beginning of the week. We think the best option is to buy.