Dec 23 2020 0
Only today trading session before the market entered the year-end holiday. Please consider risks stemming from low liquidity environment in the weekend sessions.
Latest updates
- Dollar volatility spiked during the new week as a new strain of coronavirus in the UK was causing anxiety among investors ahead of the year-end holiday.
- Experts say there is no evidence that the vaccine will not protect against this new variant of the virus, but the UK's chief scientific adviser said that pending further results, there could be Social restrictions in England.
- The Senate approved the $2.3 trillion coronavirus stimulus package at a rate of 92-6, after the House of Representatives passed the previous Monday night with a majority of 359-53. The bill will now be passed to the President to be signed into law.
- Foreign Minister Pompeo said visa restrictions on Chinese people affect officials believed to be responsible or complicit in the persecution of religious practitioners, ethnic minorities, and dissidents and others.
USD/JPY chart
After the bearish signals around 104 that we mentioned, the price did not drop as expected but turned up slightly, so short orders are in negative status. However, it is not time to give up these positions. Short positions are considered failures only if the price breaks through 104 again. Hence, we continue to keep these commands. The initial target is the low for December, and the further 102.4.
EUR/USD chart
Price turned around and re-tested the confluence area of 1,217 after the gap closed. The trend-buy tactic on breaking the 1.227 peak was not triggered. New price actions have made this scenario less likely to happen. However, it is still possible to keep it. Also, for reversal traders, pay close attention to the upside channel line and the price zone around 1.215. If it is broken, short positions may be considered. Avoid entering orders too early because it is easy to get a bear trap. It is best after a pullback after the breakout.
GBP/USD chart
The price has not completely filled the gap and is continuing to go sideways. There are no new signals we can take advantage of. Avoid trading at current price ranges. Wait for the price to return to the two sides of this sideways price zone and watch the price action to get clues for the next direction.
USD/CAD chart
The price bounced back around 1.284, earlier than our expectation around the 1.280 zone. However, the remarkable sign for us to return is that the uptrend has not appeared yet, so you should not rush. In the new session, continue to observe the peak area of 1,295. If the price breaks this zone, new buy orders should be considered.
AUD/USD chart
Buying force was not enough for prices to fill the gap created earlier this week. The price is currently falling towards the uptrend line. The strategy to buy on this uptrend when the price breaks the top of 0.765 is still retained (less likely). However, it is necessary to add a sell strategy if the price shows signs of a trend line break (more clearly). The current support range is quite wide, from 0.745-0.750, so do not rush into orders.
