Dec 29 2020 0
HI, just back from my vacation. What a weekend. Ok, let's dive in and see what we have for today.
- The EU stock market rallied earlier this week after the UK-EU reached the long-awaited Brexit deal, while the US fiscal stimulus also brought demand for risky assets. bigger.
- US President Donald Trump on Sunday signed into law a $ 2.3 trillion pandemic spending and aid package, restoring unemployment benefits to millions of Americans and preventing the federal government shutdown in the crisis was created by himself.
- Democrats in the US Congress will try to push through expanding the pandemic relief payment to the people after President Donald Trump pulls out of his fight with lawmakers. could shut down the federal government.
- Bank of Japan policymakers have split over how far they should go in controlling the yield curve with some calls for a comprehensive review of the framework.
New developments are not favorable for short orders. The price has now re-tested the key confluence 104. In case the price breaks out of this zone, short orders will be stopped out and we will temporarily abandon selling strategy. However, we should not rush to buy in this case because the amplitude to the upper long-term downtrend line is not much and another bull trap may appear.
The first signal came to the buyers when the price broke the descending channel line of the narrow accumulation zone but then the buying power weakened and appeared a strong retreat to the breakout zone. In general, there have not been any significant changes. We will continue to observe the two ranges of the range and keep the old strategy. For the bulls, when the high 1.227 is broken, buy orders will be activated. For reversal traders, they need to wait for the support area (and strong confluence) around 1.215 to be completely broken, for the trend to break, creating a bearish structure and a rounding top pattern. At that time, they should consider selling orders to the 1.210 zone, and then 1.20.
With strong bearish signal on the daily chart, prices are falling as expected. The target is already halfway through. We should consider moving Stop Loss to minimize the risk. The target remains around 1.33.
Price continued to show "hesitation" around the 1,280 transition zone with a new doji. This is still not enough for new uptrend traders to return to buy orders. Continue to wait patiently for more reliable signals, and note that this is the last price range for reversal traders to consider entering orders.
The price has yet to move strongly and is still in the sideways zone that we are observing. A notable new signal is the possibility of forming a double top pattern, but it is still quite early to conclude about this pattern. Continue to watch price action at the two edges of the range.