FOREX CHART ANALYSIS JUL 16 - BIG CHANCES
Here we have the analysis of the charts of the most common currency pairs. But first, let's check out the most important news for today.
- Lael Brainard, a Federal Reserve board member, spurred a sell-off on the dollar when hinted on Tuesday that the Fed may need to shift from focusing on “stabilizing the economy to something more appropriate.” Her comments are the latest signals from the Fed showing concern about signs of a slowdown in economic recovery.
- BoC kept the interest rate at 0.25% in the latest policy meeting.
- He showed the unreality of what can be achieved, European Minister Michael Roth said in a meeting with EU foreign ministers.
- The latest UK consumer price index for June has surpassed forecasts and increased from 0.5% to 0.6%. As a result, investors have become more optimistic about the country's economic recovery. In addition, Bank of England (BoE) policy maker Silvana Tenreyro stated that she was ready to push new stimulus measures to support Britain's struggling economy.
The price has approached the bottom of 106.6, so you should consider escaping short orders or moving Stop Loss to reduce the risk. Remember that the area 106.6 is the confluence of the support and the lower border of Bollinger bands so it may not be broken immediately. You should not enter a new order at this time, only sell when prices break below. The next target is 106.
The signal that we have been waiting for many days has finally arrived: the price approached the border above 1.142 and created a false breakout. You may consider selling. Stop Loss can be placed above the battery bar on daily or safer above the zone 1.148. These are considered short-term orders in the medium term. The immediate target is the MA20 on the daily chart and the lower band of range, the zone of 1.116.
The price recovered strongly and penetrated the neckline of the previous multi-peak pattern. However, the short-term uptrend is only considered to continue when the peak of 1,266 is broken. Currently, the candlesticks on the daily chart and H4 chart still support the sell orders, so you should continue to maintain. Place SL above 1.268. Add short orders when the price breaks the bottom of 1.248.
Our guess is correct: prices only break the trend line and then fall back down. It is currently retesting the decisive price zone 1.35. You should keep the old short orders, move the Stop Loss and prepare to add new positions when the signal breaks down. The target will be the bottom of 1.33.
The price has re-tested the 0.706 zone but could not cross. The price action is also showing the return of the selling side. As mentioned before, we only abandon view decreases when the area of 0.706 is broken. You may consider selling. The RR ratio is very good, however, we need a tight Stop Loss above 0.706 because the price has been accumulating relatively long.