FOREX CHART ANALYSIS FEB 7 - SURPRISED!
Today is Friday. It's time to wrap up your trades before the weekends. Take a look at the chart analysis today and decide for yourself what trading strategies should you choose.
- In the first hearing in front of the EU Parliament - ECB President was cautiously optimistic, she said: “While the uncertainties surrounding the global economic environment are still high, issues related to trade tensions trade between the United States and China is regressing. However, other risks remain - such as uncertainty surrounding the corona virus's impact.
- China's Ministry of Finance said in a statement that from 05:01 GMT on February 14, the additional tariff on 1,717 US items will be reduced to 5% from 10% and some other items will fall. reduced to 2.5% from 5%. Although the announcement follows the commitments in the first-phase trade agreement, analysts also consider it a positive move by Beijing to boost confidence amid the devastating Wuhan pandemic. economy and investor psychology.
- Contracts for 'Made in Germany' products fell 2.1% from the previous month, the biggest drop since February and completely opposite to a Reuters forecast of 0.6% increase.
- According to a report from an anonymous source of Reuters, OPEC + could agree to cut production by 500k barrels a day this week. However, the biggest obstacle is currently Russia.
- The informal non-farm payroll of the US has shown a surprising number. Accordingly, there were 291k new jobs created compared to expectations of only 156k.
After many consecutive gaining sessions from the beginning of the week, the gaining trend is stopping. However, overall, we still prioritize buy orders to follow the uptrend. If you can buy in the good price areas below, you can keep the order. If there is no order, wait for the signal at 109-109.5. Note the zone 109.5 is the area of MA20 on the daily chart.
Price has officially broken the bottom 1.10. Perhaps many of you are regretful of having previously exited this area. But the transaction is like that, something should be done. The short side may come back today, but note that the decrease range is not much so only short-term trading. It is necessary to place a tight Stop Loss just above the resistance area. If you are reversal, wait patiently for signals at the next support area before opening a sell order.
Price fell as expected despite previous bullish signals. The current support is quite wide, so the breakout is not yet clear. If you sold yesterday, you should consider exiting or at least moving the Stop Loss as there may be some recovery today when the MA20 on the weekly chart is being tested. If there is no order, wait for non-farm or new week.
Price is persistently accumulating in a narrow range at a high level. Of course in the non-farm news tonight it will be broken. Staying at this high price for a longer time reduces the chance of a reversal. However, for now, I am still inclined to this possibility. Selling this price with existing bearish signals is relatively good, but the risk is a bit high that Stop Loss will be reached. Whoever is more careful, then wait at the overhead resistance.
The buyers soon showed weakness after the recovery. However, if you are having a buy order at a good price then you can still consider holding. My view is that the resistance zone of 0.669 will not be easily broken