Dec 07 2020 0

So a new week has begun and we should check out the daily charts on the first day of the week to see which forex trading strategies to be applied.

Latest updates:

  • The November NFP was significantly weaker than expected, reaching 245k, the lowest growth rate in 6 months.
  • BofA said on Friday that investors stepped up buying more risky assets while withdrawing money out of safe-haven bunkers, following major vaccine forays extending hope that Economies could get closer to normal by 2021. BofA said a record $115 billion has been poured into hedge funds over the past four weeks. In contrast, the traditional shelters of gold have seen capital outflows of $9 billion in the past three weeks.
  • Brexit: There are reports that the UK and the EU have made progress on fishing quotas, sparking hopes that a post-deal is within reach. However, UK Economy Minister Alok Sharma said on Friday that these trade talks are in "difficult times", and France has also threatened to veto any deal that they did not agree to.

USD/JPY

USDJPY chart Dec 7

The price failed to penetrate the 103.6 zone and is bounced up. The recommendation to close short orders is very accurate. Looking at the current price action we see a possibility that the price will continue sideways again, so there's not much to do at this time. We will continue to watch, especially the two resistance zones of 103.2 and 104.8. Short term range traders might consider returning to trading for clear signals around these price ranges.

EUR/USD

EURUSD chart Dec 7

The upside momentum was once again blocked at 1.217. Price continued to create another pin bar on the daily chart and formed a remarkable bearish pin bar duo. On the H4 chart, we also see a complete mini Double Top pattern. All these signals are in favor of our sell order. You can consider adding short short positions after the probing orders in the previous session. The initial target target remains around 1.208, followed by the bottom of the upside channel, around 1.20.

GBP/USD

GBPUSD chart Dec 7

There have been important signals on the GBPUSD chart, including a very clear bull trap at zone 1.35. You can make use of this signal with short-term short orders whose Stop Loss is placed abpve the pattern. The initial target will be the lower bound of the previous accumulation zone, around 1.33. In case it is broken down, the target can be considered to raise the target to 1.30.

USD/CAD

USDCAD chart Dec 7

The price approached our 1.28 target quickly so consider exiting short positions. Expect the bulls to return to around this confluence area. The bears should only consider entering new orders when the price successfully breaks out of zone 1.28. Avoid entering orders too early because you can get bear trap. In a bear trap situation, short-term reversal traders can also take advantage of it, but buy orders then need to have tight Stop Loss below the pattern.

AUD/USD

AUDUSD chart Dec 7

The 0.74 (peak of August) zone has been broken, but looking on a large timeframe it is difficult to determine if the price has completely broken the current resistance zone, as the amplitude is quite large. Therefore, we recommend you should ignore AUD/USD at this time. There are better setups in other pairs now. In case the price continues to move up, the destination might be the 0.75 zone.

author

Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.

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