Jan 12 2021 0
The USD continues its rally and is leading to the formation of multiple reversal patterns on the currency pairs.
- The UK's chief medical advisor, Professor Chris Whitty is giving a rather gloomy outlook on the Covid-19 epidemic in the country. Although the UK is at the forefront of the vaccine rollout, things are still pretty bad and it is likely to continue to do so for the next few weeks, before signs of disease slowdown;
- JPY is weakening by main factors such as: US bond yields increase, Japanese government wants to protect the exchange rate from JPY too strong, Tokyo enters a new emergency;
- Wall Street firms in Hong Kong including Goldman Sachs (NYSE: GS) and JPMorgan (NYSE: JPM) have laid out plans to reduce access to Chinese telecom companies listed in the US investment ban. into companies that Washington considers involved with the Chinese military. Certain parts of the restraining order will go into effect after Monday;
Price is still blocked around the confluence zone 104.0-104.4. Our strategy is still to look for bearish signals around this zone to return to the downtrend, however, the selling pressure is still very weak and there is nothing we waiting for. In the case the price breaks the down channel line, we should not rush to buy in because there are still many hard resistances above, in this scenario, we wait for a selling opportunity around 104.8-105.
The price is still falling quite sharply, the uptrend has officially been broken with the low peaks marked on the chart. Brothers who entered orders according to previous recommendations should consider partially exiting the order and / or moving the SL because the price is likely to correct before continuing the downtrend. Two areas where we can wait for the opportunity to replenish positions are when the price retests the 1.225 zone or when the price completely breaks down of 1.215.
The price has successfully broken out of the 1.355 zone as expected and is currently re-testing this price zone, this is a normal price action, you should not be too concerned for new additional sell orders, just keep the SL above. this area, more careful place it above the 1.36 area.
The price met the conditions we mentioned yesterday, completed a round bottom pattern, broke the downtrend line and broke the 1.28 price zone. You can consider buying orders to the zone 1.295-1.3.
Prices are continuing to decline as expected after completing a classic head and shoulders reversal pattern. What we are waiting for next will be a breakout of the 0.77 level and upside channel line. You should move SL for previous sell orders to minimize risk.