Feb 04 2021 0
We still need some deciding signals to make a move. Let's analyze the charts so you know what we are waiting for.
- A survey found the eurozone's economic slowdown worsened in January as new restrictions aimed at quelling the spread of the coronavirus heavily hit the service industry - which is a key industry. of blocks;
- Deputy Governor Masazumi Wakatabe said that the central bank of Japan is ready to cut interest rates further and continues to seek ways to cope with economic shocks, signaling its determination to maintain or strengthen support for the affected economy. affected by the pandemic;
- The dollar edged higher at the start of the European session Thursday, especially against the euro as traders were concerned about the EU's economic recovery when comparing it to the US recovery;
Prices continue to accumulate in a narrow area without any breakthrough. On the daily chart, the spinning top pattern, which indicates increasing selling pressure, has not been activated or is invalidated. Be careful with price corrections. We keep the two old strategies: Wait for a standard pullback to around 104.5 and buy on signal. Or, the scenario is less preferred because the RR is not good, wait to buy when the price successfully breaks down to 105.7.
The price has broken the bottom of the spinning top formed in the previous session, which is invalidated. However, buying power then surged and Wednesday session ended with a rising pin bar around the long-term uptrend line. Although this is a weak signal, we still need to be careful. For those who already have short orders, consider keeping the order and expect the decline to continue. If you have not had an order yet, you should still wait for the pullback to rise to the upper boundary of the decreasing channel and enter the order when there is a signal.
The price seems to be very close to a break down as the rejection at the bottom of the range is already weak. This accumulation area is relatively narrow and long so the breakout force can be quite strong. Continue selling strategy when the price breaks down to the lower boundary (prioritize) and buy when the price breaks down the upper boundary.
The price broke the short-term trend line after being strongly rejected by the 1,287 zone. It is likely that the price will continue to go down and approach the bottom of 1.27. If you were able to enter the short-term order to return to this area of 1.27, continue to hold the order. However, the price very often re-checks the long-term downward channel in recent time, meaning that buying pressure may suddenly return, so it needs a tight Stop Loss. Also, for reversal traders, you still need to observe the 1,287 zone. When this price range is broken, consider buying orders.
The price is continuing to recover as expected, due to the mentioned unfavorable conditions including the Spinning Top pattern on the daily chart and the bear trap around the lower boundary of the down channel. Therefore, we should pause sell orders and wait for the opportunity to return when the price retests the 0.77 zone.