It’s midweek. Let’s take a look at the major pairs in the market and see how they have moved. By doing so, we can all apply 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.
Yesterday's price movement was not much but brought about significant changes for AUD/USD. Price failed to retest the zone of 0.687. Observing on the daily chart, we see the price is showing the following trend in the doji in a sensitive area (retest the trend line). If things go this way, the AUD could go up in the medium term. On the H4 indicator, after the decline from the beginning of the week, the upward channel remains. Therefore, now we should be inclined to buy.