FOREX CHART ANALYSIS MAR 12 - BE PATIENT!
The big banks in Europe are make their moves in order to stabilize the markets. So now we must watch closely to see how things will turn out. Some pairs have gone where we expected and some still need more signals. Check out my chart analysis on the most common pairs today and see what trading strategies we should use.
- The Bank of England joined the race to lower interest rates initiated by the Fed last week. Specifically, Bank of England urgently cut interest rates by 0.5% and announced loan support just hours before the release of a budget designed to prevent recession due to coronavirus outbreaks.
- Oil prices continued to fall on Wednesday, abandoning an earlier recovery when Saudi Aramco CEO said the company was asked by the Ministry of Energy to increase capacity to 13 million bpd from 12 million bpd.
- European Central Bank President Christine Lagarde said the EU is at risk of a major economic shock similar to the 2008 financial crisis unless the leaders acted urgently to deal with the Coronavirus. She also said the ECB would act as soon as this week.
The price returned to the downside after closing the gap but without any clear signals. Therefore we have missed. Note the next two support areas are 103 and 101. The price will likely bounce up in this zone. If there is an increasing signal at 101, it is advisable to consider buying closely. For those who have short orders on the downtrend, they can hold and set a target at 101.
Sellers are regaining control. The zone of 12127 is still holding. Today is an important day for EUR, so be aware of it. There is no clear signal, so it is difficult to say whether the corrective wave has ended or not. Moreover, the momentum on the daily chart is also very urgent. Should only trade (buy in) when prices continue to retreat deep to the 1.12 or 1.11 range depending on future price action signals.
Prices have recovered slightly and then returned to the momentum as expected. However, the target price area has not yet been approached. Those who have short orders according to the previous recommendation should consider escaping before the zone of 1.275 or moving the Stop Loss to reduce the risk. It is likely that there will be corrections in this area.
USDCAD is continuing to go up. The price zone of 1,380 is a very important resistance area and has not been violated since April 2017. Therefore, we should not trade without a clear signal. Please wait patiently. If this zone is broken, the next resistance will be 1.4.
There was no noticeable bullish signal at 0.645, instead it was continually retested. This increases the likelihood of it being broken down. Do not wait to buy now, but should be prepared for a breakdown.