Jan 04 2021 0

Happy new year guys. The market is back starting from today. Check out the chart analysis of today, January 4 to see which trading strategies we should use.

Latest updates:

  • Gold has had a successful year with the largest increase in a decade.
  • Meanwhile, the USD ended 2020 in sadness, continuing to slide down Thursday as investors bet that the global economic recovery will suck money into risky assets even if The United States must borrow more to finance its growing double deficit.
  • The US Senate officially rejected the bill increasing the payments from $ 600 to $ 2,000.
  • China approved its first COVID-19 vaccine, a vaccine developed by an affiliate of the state-backed pharmaceutical giant Sinopharm.
  • Republicans and President Trump continue to challenge the results of the US election, things will be clearer when the date of counting the electoral votes takes place on January 6.

USD/JPY

Jan 4 USD/JPY

After approaching the bottom of December, the price has recovered quite strongly, but the down-gap this morning erased those profits. We still keep the old strategy, which is to keep watching and waiting for more signals. We should not place orders too early at this important price zone. If the price creates a bear trap, short-term reversal traders can consider buying up. If the price breaks down to 102.8, trend traders can continue with the short orders to the 102.4 price range.

EUR/USD

Jan 4 EUR/USD

The trend trading strategy after the breakout was unsuccessful. The price created a bull trap around the 1.227 zone. The strong decline in the last session of the year created a set of extremely strong bearish engulfing candles on the daily chart. Therefore, in the short term, it is likely that price will move in the direction of this candlestick set. Anyone who had a buy order before should consider exiting the order early and waiting for the price to return to the 1.215 zone. Then, we'll watch the price action to make our decision.

GBP/USD

Jan 4 GBP/USD

The 1.363 price zone has been broken, and we must abandon short term selling strategy. Currently, there appeared a set of spinning top and doji candlestick patterns after the breakout, reflecting the hesitation of the market. However, these are too weak reversal signals. In the event that they are invalidated, it is likely that the price will continue to go up. Overall, GBPUSD does not have clear opportunities. We should keep observing and avoid trading for now.

USD/CAD

Jan 4 USD/CAD

After being rejected around the 1,270 price zone, the price created a dragonfly doji on the daily chart. This was supposed to be a bullish signal, but this morning's down-gap invalidated the pattern and is suggesting a continuation of the downtrend. In the first session of the week, we will pay attention to the area at 1.270. If it is broken, short orders following the trend can be considered.

AUD/USD

Jan 4 AUD/USD

The price went up another beat and approached the upper boundary of the rising channel and then adjusted down as expected. We currently have a bearish engulfing pattern on the H4 chart and bearish pin bar on the daily chart. Therefore, in the short-term, prices will continue to decrease. The target could be set around 0.764. Whether to return to the trend or continue to wait will depend on the price action around this zone.

author

Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.

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