Jun 25 2020 0
Gold prices rise. Big surprise with EUR/USD. Not much with CAD or AUD. Let's take a look at the most common currency pairs' charts today and see what forex trading strategy we should choose.
- Gold prices reached a new high in 8 years due to concerns about the second wave of infection that led investors to place more bets and hidden assets.
- The increase in new cases of Covid-19 in many states across the United States is accelerating, thereby increasing the risk of economic blockade. Texas, Arizona and California all reported record numbers of new cases on Tuesday.
- The U.S. Treasury Secretary said the government is seriously considering a new economic support package and may extend the 2019 tax payment deadline again.
- The US is considering tariffs on products imported from the EU as part of a dispute over aircraft production with the EU, according to the US Trade Representative's notice.
The price has risen to the trend line as expected after a strong bullish signal on the H4 chart. There has not been any signal of decline, plus the momentum is still strong so you should not rush to sell again. Wait for the price to retest the resistance zone of 107.6, which is also the MA20 area on the daily chart. This time, selling will be more advantageous.
A fairly strong pullback on the EUR/USD chart is making buyers anxious, but it also provides a decent RR level. The current price area also coincides with the MA20 line on the daily chart so you should continue to buy when there are signals. Stop Loss should be placed just below this confluence zone. The short-term goal is 1.14. In case the price penetrates the current support, we will abandon the buying view in the short term.
Our waiting has paid off. The selling turned very strong around the confluence zone 1.25. I hope you have promptly added your position as recommended. The current bearish pattern has formed on the daily chart. We will maintain sell orders, targeting the nearest bottom in short-term, then the zone of 1.228.
There is still not much to say about USD/CAD. Price is still accumulating and heading to the upper border. Anyone trading ranging can take advantage of this opportunity, but short positions should be placed in full Stop Loss because the cumulative area on the H4 chart has been relatively long. The breakout force if occurred will be large.
Yesterday's decline was expected but there was no noticeable signal for us to take advantage. Let's assume we missed it. We expect the price will continue to go down to the lower border, but you should not rush to buy but should continue to observe.