Dec 02 2020 0
This is the analysis of the charts of the most common currency pairs in the forex market.
- UK politician Michael Gove commented that three important contradictions still exist. The UK does not overdo its fisheries, Gove says, and there is no reason "we cannot regulate access to the nation's waters."
- On the EU side, EC President Von der Leyen said "EU wants a Brexit deal but not at any price." She added that the EU was well prepared for both Brexit outcomes, whatever might happen in the negotiations this week.
- The dollar has compelling reasons to weaken by the end of the year. Capital outflows tend to flow out of the dollar in December and back in January due to tax issues.
- The OECD (Organization for Economic Co-operation and Development) sees a slow and uneven global recovery over the next two years. In their latest report they have lowered their growth forecasts.
- ECB policy-making member Isabel Schnabel disclosed that the renewal of the Pandemic Emergency Asset Purchase Program (PEPP) is an option.
Despite DXY's collapse, USDJPY has not changed much. It is still in the middle of the range and has no clear direction yet. A new gravestone doji pattern formed on the H4 chart also doesn't help much. We are still on standby. Watch for price action as it approaches the 105 and 103.7 bands.
The correction around the 1.20 zone took place quickly. The bulls returned earlier than expected and disabled the pinbar pattern formed on the previous daily chart, replacing it with the bullish engulfing pattern. Breakout force is very good, although there is a possibility that the price might retreat around 1.207 at the moment. However, the likelihood of an uptrend continuing is higher. So if you entered the buy order in time, keep holding. If not, wait for the opportunity after a retreat. The next target is 1.215.
GBPUSD also turned up similarly to EURUSD, invalidating the rounding top pattern formed earlier. However, the important peak area has not been broken, so the opportunity to trade GBPUSD has not come yet. Buy orders are only considered when the 1.345 - 1.347 zone is completely broken. For now, we continue to observe. Do not enter orders too early because of FOMO.
DXY's collapse caused USDCAD to re-test the low price for more than 2 years. However, it is still kept. The previously formed bullish reversal patterns are at stake. Note the possibility of a strong decline if the current support at 1.295 is broken and the price might return to 1.280 without difficulty. Short positions can then be considered. For those of you who trade short-term reversals, do not add new orders. Consider exiting the market when the bottom is broken.
A bit surprising when AUDUSD was not volatile yesterday. The price is still in the middle of the channel so it is not suitable for new action. Short-term reversal traders can continue to maintain the short positions you have. We expect the price to return to the lower boundary of the channel.