Jul 02 2020 0
There are definitely some interesting signals today on the most traded currency pairs' chart. Let's analyze where they are heading so that we can choose the best forex trading strategies.
- Positive US ISM data and vaccine expectations spurred the sale of shelter currencies such as JPY and USD.
- The bad news came to the US earlier this month when the state of Texas recorded a new record high of 6,900 cases, while California also reported a new record high of 8,441, according to Reuters. These numbers amplified the warning on Tuesday by leading US physician Anthony Fauci that the country was losing control of the disease, he even warned the daily number of infections could reach 100,000.
- Unlike the US, after controlling the epidemic and starting to reopen the economy, the EU and the euro continued to receive positive news. Specifically, the EU's general purchasing management index, IHS Markit in June, increased to 47.4, while the UK's index increased to 50, which is no longer in the shrinking area.
- The increase in Germany's unemployment rate plummeted in June to only 69,000 - far below the expected figure of 120,000.
- Chinese police made the first arrests in Hong Kong under a new security law, enacted Tuesday.
The bearish engulfing pattern has clearly formed on USDJPY's H4 and D1 frames. The accumulation zone also shows signs of being broken, so it is likely that the price will continue falling in the short term. The point to note now is that the RR ratio is not good. You should not trade at this time.
The price continues to accumulate, although it is approaching a weak confluence - at 1.128 but you should not trade now because the range has narrowed a lot. We still continue to pay attention to price action in the border areas for further analysis.
The price has reached the selling zone of 1,245, but the recovery is still strong and there have been no signs of support for the sell order, so we will continue to wait and extend the waiting range to 1.255. You should not quickly abandon the selling view because basically, the decreasing structure is still present.
Price is still in range. Who trades ranging also short orders can hold, but do not add new orders at this price range. The target is still the bottom of the accumulation area. Those who trade reversal or trend should continue to wait for the breakout.
Price rebounded slightly but failed to break through the accumulation area. Below, the bulls are still actively ambushing the medium-long-term uptrend line. Today we have a bearish candlestick signal but we should not trade it as the accumulation zone is coming to an end. It’s likely that a breakout will come today with the US NFP.