Jul 30 2020 0
There are some interesting break through on the charts today. Let's a look at them in order to find the most suitable forex trading strategies.
- The dollar continued to fall to its lowest level in more than 2 years on Thursday after the Fed reiterated its commitment to supporting the economy to limit the damage caused by the disease.
- The agreement on the new stimulus package in the US is still unclear after the latest meeting between leaders of the Democratic and Republican sides, Senator Chuck Schumer - a participant in the meeting - commented: "They have no coherent and comprehensive plans.”
- According to a Reuters report, the number of deaths in the US rose to 150,000 on Wednesday. the highest level in the world, an increase of 10,000 more in 11 days
Price has nearly approached the target area 104.5. Anyone who has 'short' positions should consider exiting because the price is likely to correct from this resistance area. However, we do not give up selling but wait for the correction to end or when the price breaks below the bottom of 104.5 and then continue to sell.
After some bearish signals and ending a 7-day gain, EURUSD bounced back on Wednesday. However, there has not been a clear break of the 1.18 resistance area, plus the market is in a state of overbought, so we do not enter the order at this time. Still the old strategy: wait for the 1.17 zone to be broken and consider short-term short-term orders according to the correction. The bulls only return to the upside when the price approaches the 1.16 zone or beyond, the 1.15 zone, around the lower boundary of the up channel.
After the breakout, the price has approached the 1.3 area as expected. This is a relatively strong confluence area and the upper boundary of the medium-term uptrend channel, so it is likely that prices will adjust. We do not buy in the current price area, but wait for the bearish signals to sell in the short term. The initial target for this correction will be 1.28.
The price continues to be compressed around the support area of 1,335, so not much has changed. However, continually approaching a resistance area will increase the probability of breaking the threshold. Please continue to maintain the remaining short orders and add positions when prices break through the zone of 1.335.
The price continues to accumulate around the peak of 0.718, but there is no breakout signal so we do not buy at this time. In case the price breaks the threshold, the initial target will be the 0.73 zone. When you add long positions, Stop Loss can be placed below the MA20 and the resistance 0.718.