Dec 08 2020 0
Although there is no economic data that is considered as strong, the volatility in the first session of the week is also quite high and creates remarkable changes.. So let's get ready to change your trading strategies.
Latest updates
- The Brexit trade negotiations played out in a tug of war early this week as the UK and the EU made final efforts to narrow the significant differences and reach an agreement that would avoid leaving the chaos. when the transition expires in less than 3 weeks.
- On Sunday, California Governor Gavin Newsom again ordered the closure of major areas of the most populous state of the United States as Covid-19 cases soared to record levels.\
- Gold recovered strongly after the expectation of the US fiscal stimulus package increased.
- The development of China - Australia trade relations continued to worsen as the second largest economy in the world recently stopped importing beef from Australia's Meramist Pty company.
USD/JPY
There are still not many noticeable changes on the USD/JPY chart. The price continued to accumulate in range areas. Tactics unchanged: we keep watching, especially the two resistance zones of 103.2 and 104.8. Short term range traders might consider returning to the market when there are clear signals around these price ranges.
EUR/USD
Things have gone as expected. The original target - around the 1.208 zone - has been approached. Hope you guys have made profit. We will only add new short orders when the 1.208 zone is completely broken. For those who still keep short orders, they should move Stop Loss to preserve profits. The target for this decline is around the lower boundary of the uptrend channel, around 1.20. The buyers are expected to return around this price range.
GBP/USD
After creating a noticeable bearish signal (bull trap), the price fell sharply and approached the target price zone of 1.33, followed by a strong recovery. With this recovery phase, we should suspend sell orders. We only enter orders again when the 1.32 zone has been clearly broken down. The target then would be around the lower boundary of the upside channel - around the 1.30 zone. Also, it should be noted that Brexit is in the sprint stage, so GBP can fluctuate sharply and unexpectedly.
USD/CAD
The price did not bounce as expected but was enough to create an inverted hammer reversal pattern on the daily chart. Short-term reversal traders could take advantage of this signal and buy in short term. Note that Stop Loss should be placed tightly below the model. The target could be set around 1.290 - 1.295. For traders who will short in a downtrend, there are two points to return: when price invalidates the pattern above and completely penetrates the 1.280 zone or when the price re-tests the 1.290 zone with a strong bearish signal. .
AUD/USD
Selling pressure in the 0.740 - 0.745 zone does not seem like much as the price has recovered and re-tested this zone right after the first notable retreat. This price action created the spinning top pattern on the daily chart, which is beneficial for the sellers. However, this signal is not strong enough for you to enter. On the other side, the current resistance range is quite large, making it difficult to determine a true threshold breakout. Besides, the range to the next resistance is not much so you should avoid buy orders.
