Dec 09 2020 0
Check out the latest updates on daily charts of the most common pairs to see what trading strategies we should choose for today, December 9:
- British Prime Minister Boris Johnson said on Tuesday that there may come a point where London must admit a no-deal outcome and abandon negotiations.
- There are many moves on the market showing that investors seem to be losing their guard against the hard Brexit scenario.
- The dollar rose slightly on Tuesday with risks balanced by a rising number of Covid-19 infections and a clearer fiscal stimulus outlook coupled with possible US vaccine approval.
- The Cabinet of New Japanese Prime Minister Yoshihide Suga on Tuesday approved a stimulus package worth $708 billion, which includes about 40 trillion yen ($384.47 billion) in direct financial spending and initiatives aimed at reduce carbon footprint and promote adoption of digital technology.
Prices continued to fluctuate in a very narrow range, so there have not been any noticeable changes. However, in this new session, we need to pay attention to observe two more boundaries of the cumulative triangular area beside the two resistances of 103.2 and 104.8 mentioned in the previous sessions. In case the price breaks the accumulation zone, depending on the breaking force and remaining amplitude to the next resistance zone, we can consider trading. Please note that you should not trade with RR less than 1.
Prices did not change much in the last session and have not added any new signals. However, in general, price action is still showing selling pressure around the resistance at 1.215. If you have previous short orders, consider moving Stop Loss to reduce risk. The 1.208 zone has not been broken yet so we are not in a hurry to enter a new order yet. Continue to wait to short when the price breaks this zone. The target will be the lower boundary of the upside channel.
GBP/USD hasn't changed much either. Prices remain in the midst of resistance levels after a sharp retreat from the 1.25 range. We continue to observe. Only add short orders in case the price successfully breaks the low of 1.32. The target can then be set to the price zone 1.30. Note: when trading GBP at this time, it is advisable to decrease the volume and increase the Stop Loss level to prevent the risk of volatility rising.
After creating the inverted hammer pattern, the price re-tested the low of 1.277 but was unable to penetrate it and bounce back. This price action reinforces the previous model and is creating an additional double bottom pattern. Overall, things are good for anyone to trade short-term reversals. Long orders need to be placed tightly Stop Loss below this bottom. Targets can be set at 1.290 - 1.295. For trend sellers, wait for a signal when the price breaks down to 1.277 or re-testing the 1.290 transition zone.
The spinning top bar on the daily chart is still intact, which means the possibility of a downward adjustment is still there. However, the amplitude to the next resistance zone when the price breaks down of this pattern is very small, so it is not favorable to trade. Anyone who wants to sell should wait for a signal to break the upward channel. Buy orders in case of a price breakout of 0.745 should also be limited because the RR is not good and it is difficult to determine a real breakout when the range of the resistance zone is quite large.