Feb 27 2020 0
The market has been less volatile than the early sessions of the week but today the US will have many important news, you need to be wary of the USD. Remember, look at the charts closely and then choose the right forex trading strategies for each pair.
Latest updates:
- The National Centers for Disease Control (CDC) has warned Americans to prepare for a pandemic. The warning contradicted the statement of White House economic adviser Larry Kudlow earlier that "We have control of it."
- After 3 days of sharp decline, the dollar has stabilized today but is still on the defensive.
- Eurozone currency market begins to fully evaluate the interest rate cut of the common currency in December. The reason is still the spread of the disease affecting the economic outlook. Futures are showing the possibility of dropping 10 basis points at the December meeting, up from 7.5 basis points at the beginning of the week. The rapid outbreak of the disease in Italy has raised concerns that the block's economy may soon fall into another recession.
USD/JPY
Price did not change much yesterday, just adding an uncomfortable whipsaw. We are still inclined to buy in but need a convincing signal. Continue to wait patiently and not eliminate the possibility that the price might reach the lower boundary of the channel before returning to the uptrend.
EUR/USD
Price approached the target of 1.109. Looking at the price action we can see that the buyers are weakening. On the daily chart, there were also ominous signals at MA20. Therefore, previous buy orders should consider closing, or postpone the Stop Loss to reduce the risk. Those who are trading in the medium term are waiting for opportunities to return to sell in a downtrend.
GBP/USD
The price could not reach the upper boundary of the accumulation zone and turned around slightly. A bearish signal has appeared on the daily chart. The amplitude is still high, so it might consider selling in short-term and target around 1.280.
USD/CAD
What we were afraid of yesterday happened, the stiff resistance zone of 1.332 was broken, which means that the price is escaping a large range on the daily chart. Today's view changed, and we could buy in an uptrend. The target is the zone of 1.342.
AUD/USD
AUD/USD broke out of the sensitive price point and continued the previous downtrend. However, the margin to the next support area is not much, the sell orders do not have a good RR ratio, limiting short-term selling. For short-term reversal players, you can wait for the signal to increase at 0.650, whose RR level is really good.
