FOREX CHART ANALYSIS JANUARY 7

Check out the chart analysis of today, January 7 to see which trading strategies we should use.

Latest updates:

• Tensions between the United States and the two countries Iran and Iraq continued to rise as the two sides continuously made aggressive statements and guaranteed asset prices skyrocketed.
• Germany's service sector in December grew at the fastest pace in three months, a survey on Monday showed. The combined PMI, which tracks both manufacturing and services, accounted for more than two-thirds of the economy, rose to 50.2, signaling a small expansion after three consecutive months of contraction.
• China plans to send its top negotiator - Deputy Prime Minister Liu He - to Washington to sign a first-phase trade agreement between the two countries. Reports say it falls between January 13 and 15.

USD/JPY

The price has retested the neckline as expected, a bearish signal has appeared, so you can go back to short. Note: Stop Loss we put above the bearish pin bar pattern. Watch out for failures when prices continue to go up, in which case, the MA20 on the daily chart can be the point where the bears return.

EUR/USD

The price went up as expected after the bullish signal of the daily chart. Long orders are profitable. You may consider moving a Stop Loss to reduce risk. The target price for this session will be 1.127.

GBP/USD

After the strong bearish signal on weekly, the first session of GBP/USD increased again. Currently, the price is retesting the resistance area of 1,317, if the short-term trading is in the downtrend thanks to the bearish signal on weekly, it is possible to consider selling at this price area, the price is relatively advantageous. 

However, I personally assess GBP transactions at this time relatively risky. Don't forget that the British Parliament will reestablish today, and it could also cause the GBP to fluctuate abnormally.

USD/CAD

CAD is still receiving positive support from oil prices, currently it is re-testing the bottom of 1.296. Still holding the old view, USDCAD is likely to fall to the zone of 1.29 before recovering. Note: Do not catch the bottom at the current price range.

AUD/USD

At the beginning of the week, the price fluctuated around 0.693, this is the confluence zone that you might consider buying. However, at the moment, the basic situation is not good and there is also a decreasing signal on weekly weekly so it is not recommended for everyone to sell. I am inclined to the possibility that the channel will be broken.