FOREX CHART ANALYSIS JUL 14 - THE MOMENT IS COMING
As usual, today we take a look at the charts of the most traded pairs for find trading opportunities as well as make plans for the future.
- The governor of California on Monday announced new restrictions on businesses. Los Angeles and San Diego states also said children will not return to class during the new semester because of the new number of new infections and hospital admissions. For the first time President Donald Trump wore a mask in public after repeatedly refusing, he even mocked his rivals in the past for wearing masks. This news has partly prevented the USD sell-off market because there are still significant risks.
- Earlier this week, investors turned to risk-sensitive currencies in the context of optimism about the upcoming earnings season of businesses even as the covid-19 was raging.
- As for the EUR, the decision of the credit rating agency Fitch at the end of Friday confirmed that the Italian credit rating at a stable outlook has made EUR continue to strengthen.
- Crude oil prices fell on the prospect that OPEC+ and its allies will restore output by the end of this month. According to an emergency agreement on production restriction that was carefully worked out by OPEC+ in response to a sharp drop in oil prices, the agreement to reduce production by 9.7 million barrels a day will be lowered to 7.7 million barrels a day by the end of July.
The price corrected to MA20 and the upper boundary of the newly formed down channel. A signal of decline has also appeared but is quite weak, plus the momentum on the daily is quite good, so you should short exploration only in small volumes. In case the price keeps going up, it will likely approach the upper border of Bollinger bands daily, coinciding with the previous peak at 107.8. Note that we only trade in short-term at these price areas because the price has not got out of the range.
There are not many significant changes on the EURUSD chart. Price is still in the large range. The most noticeable point is that the short-term uptrend channel is clearer and it is reinforcing our selling wait around the zone of 1.142. Please be patient. If there is a bearish signal at this confluence area, consider short positions.
Price has not broken through the confluence zone 1.268 after 3 recent re-tests. Currently, the bearish signals have been very clear, especially on the H4 chart. We have a two peak pattern, a channel breakout, and 2 sets of bearish engulfing. Therefore, we can sell from here. The major concern is that the price has not penetrated the support level of 1.25. Therefore, you should not enter the volume completely but wait to add positions when there is a possible signal of breaking the threshold.
The price has not dropped sharply as expected but is recovering, showing signs of breaking the trendline. However, nothing is clear. We continue to maintain short probes. Stop Loss should be set above the range. Only add position when range is broken down. These transactions are considered for the medium term.
The price continues to accumulate in a narrow band but there has been an additional signal of support for our previous short probes. Please pay attention to 0.692. This will be a position-adding trigger point when it is broken.