Jan 06 2021 0
The past session was relatively chaotic when the signals were greatly invalidated, stemming from the fact that the USD signaled a bullish signal earlier in the week. The race for control of the Senate in Georgia is still ongoing. Be careful of risks!
- The dollar fell versus major currencies on Tuesday after China raised the yuan's official exchange rate by the largest margin since anchoring in 2005, helping support demand for other currencies.
- Cabinet Secretary Michael Gove said Britain would soon announce a new border restriction plan to curb the spread of the Covid-19 epidemic.
- Unemployment in Germany has dropped surprisingly last month, holding steady at 6.1% despite blockade measures at the end of last year.
It continued to be an unpleasant development on the USDJPY chart. The price has plummeted again without breaking the top of the spinning top, ie those who bought safely cannot match orders. For those who have entered a buy order under the bear trap before, have stuck or stopped-out (if the Stop Loss is too tight). In case your Stop Loss didn't get hit, the order can continue to hold because the price has approached the lower boundary of the descending channel. You should not sell at this time, because the range of the next resistance around 102.4 is still very narrow.
The price action is testing the morale of the sellers. The price is once again retested and broke through the 1.23 zone. However, this looks like a false breakout, as the selling pressure above is strong. Reversal traders may continue to maintain if sell orders remain. If not, please wait for the current bar on the H4 chart to close. If this is indeed a bull trap then new short positions can be considered. Those who are more careful should wait for the signal to break the channel up around 1.22. Trend followers temporarily stop buying at this time.
The price is retesting the old high at 1.362 after penetrating it earlier. There is a possibility that this price range will be rejected. However, there is still no noticeable signal for us to take advantage of the trading now. Therefore, it is still discouraged to trade GBP.
Buy pending orders were not triggered since the price failed to break through the important 1.28 zone. A strong decline brought prices back to the bottom of 1,267 once again. We are temporarily taking no action at the moment when the signals are not clear and the selling/buying pressure is constantly changing. In case the price clears the bottom of 1.267, whoever follows the downtrend should consider short orders.
Previous reversal signals have been invalidated as the price bounced sharply and made a new high. Short orders are also stopped because of that. However, we do not encourage you to buy since the price is very close to the strong resistance 0.78. The possibility of adjustment from this area is quite high. We will keep watching and waiting for new signals around this important 0.78 zone!