Jan 07 2021 0

Finally, America had a "blue wave" with the Democrats gaining full control. This suggests that the USD will be under bearish pressure in the long term.

Latest updates:

  • Democrats are believed to have won two Senate seats from the Republic, thereby maintaining a 50/50 balance, which makes it easier for Mr. Biden to enforce his policy ambitions in the future.
  • A survey found the UK economy only to recover modestly in December after shrinking in a four-week blockade across the UK in November, driven by the service industry. Great Britain cannot fully recover.
  • FOMC reports: Several Members noted that the Commission may consider future adjustments to its purchases of assets.

USD/JPY

Jan 7 USD/JPY

Previous stuck buy orders were released as the price bounced up from the lower boundary of the descending channel. Despite being strongly rejected by the 103.5 zone, creating a remarkable set of bearish candlesticks, increasingly stronger upside corrections are showing weakness in the sellers. Amplitude to the next resistance area is not much, at the same time the market is also very afraid of a strong JPY due to fear of actions from the Japanese government. In short, we should not sell at this time. Meanwhile, anyone with a buy order can continue to hold. Only consider adding orders when the price breaks down the channel line.

EUR/USD

Jan 7 EUR/USD

Regardless of a bearish signal around 1.23, the price then keeps going up and trapping the brothers to be sold. If the SL is set too close, it is likely to have been stopped. This new price action does not favor new sell orders. However, as warned, creating a new peak recently is very difficult, plus deep and strong corrections. Therefore, we should not continue to buy. For reversal traders, we need to wait for signals to break the channel line, then the support at 1.225 before considering new sell orders.

GBP/USD

Jan 7 GBP/USD

The situation was more favorable on the GBPUSD chart. After re-testing the 1.362 transition zone, the price has created a bearish engulfing candle set. This reinforces the bearish view. Combining this set of candles with the previous strong correction from the 1.37 zone, we can consider probing short orders. Wait until the price breaks down to 1,355 and creates a new bottom before you can add positions.

USD/CAD

Jan 7 USD/CAD

Prices continue to show indecision around the 1.27 bottom zone. There is no clear signal so we keep waiting. Pay attention to the two boundaries are highlighted. Consider entering an order only when either of these zones is broken with obvious force.

AUD/USD

Jan 7 AUD/USD

The price continues to move up and approaches the confluence of 0.78. However, we do not encourage you to follow the buying trend. This is the time for reversal traders because the price is approaching the upper boundary of the long-term uptrend line. There is a possibility of a strong correction. Please wait patiently for the signal.

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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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