FOREX CHART ANALYSIS FEB 3 - WAITING FOR SIGNALS
Hello and Happy Lunar new year. We’ve just got back from a long holiday. So February has begun and we should check out the daily charts on the first day of the month to see which forex trading strategies to be applied.
- The Central Bank of China plans to pump liquidity through repo packages worth about $174 billion after the country's market opens today amid a complex Wuhan flu epidemic.
- Disease movements are serious. Major Chinese cities have continued to extend the holiday season to at least the second week of February to prevent the spread of the disease.
- The statistics office of the European Union Eurostat says gross domestic product in 19 countries that share the euro rose 0.1% QoQ, and increased 1.0% YoY, which is 0.2% and 1.1% lower than expected. The cause came from the weakening of the second and third ranked economies, which are France and Italy.
- After more than 3 years of trouble about the divorce agreement and 3 prime ministers, England finally left the EU officially last weekend. Currently, the transition period will last until the end of December this year.
Similar to gold, the bullish signal failed and the price returned to retest the resistance area of 108.4. Currently, the bearish force is very good, so if you still have a short order, you can keep holding and moving a Stop Loss. The next and final target for this selling is the support zone 108. If there is no order, do not try to chase the price, but wait for the signal to reverse in the above price area to come back. medium-term uptrend.
The target for long term orders has been reached, the price is retesting the trendline broken. Although the bullish force is quite good, on the medium-term onwards, the selling side is still dominant, moreover the area of 1.107 is also a strong confluence zone, so we should exit part of the order or move the Stop Loss to reduce risk and wait for price action in this sensitive area.
Price approached the target area 1.32. The price action is showing that it still respects the medium-long-term uptrend. The accumulation area has been broken with quite strong force, so we expect the price could keep going up. Those who have bought in area 1.3 can continue raising orders. If there is no order, you can wait for the price to return to MA20 to buy.
Price is approaching the upper boundary of the upward channel - the confluence zone of 1.325. Looking at the daily chart, from the beginning of the year until now, the momentum is quite fast. There has not been a clear correction, and the higher the price, the higher this possibility. Therefore, despite seeing an uptrend present on H4, this is not the right time to buy. Be careful with deep corrections.
AUD/USD has had the strongest weekly decline in recent months. It is also circling the bottom of many years. As a warning, at such a sensitive area we should trade only when there is a clear signal. This is not the time for both sides. Please wait patiently.