May 12 2020 0
Today, we'll analyze the charts of the most common currency pairs so that you would know what forex trading strategies to choose.
- The covid-19 epidemic has reached the White House, and at least two people have been infected with the virus, including press secretary Katie Miller and a servant of President Trump.
- In its quarterly report released on Sunday, China's central bank promised stronger policies to deal with the economic impact of the pandemic, indicating that pressure on the world's second-largest economy was not much reduced despite evidence of "normalization" of the economy. However, the PBoC does not say much about the details of those policies.
- With speculation that the dollar's benchmark interest rate may turn negative next year, perhaps the statements from Fed policy makers will be more noticeable than usual, the most prominent being the appearance of Mr. Powell's on Wednesday.
- Chancellor Angela Merkel told senior party officials on Monday that the German Constitutional Court's ruling against an ECB stimulus program was "workable" if the ECB clearly explained its plan. surname.
As a warning about the end of the downtrend, the price is now showing signs of breaking the resistance zone of 107.5. Momentum is very good. The downtrend line and the MA20 have been broken. It is likely that the price will continue going up, so we will turn to short-term buying. Note the round number 108 area. There may be adjustments in this area. The next target is 109.
On the EURUSD chart, after recovering from the lower boundary of the range, the price failed to break through the MA20 on daily levels and started falling again. A retest of the 1,077 bottom is increasing the risk of it being broken. Besides, the buying force in this area is also quite weak, so you guys shouldn’t open long positions but short ones after the breakout. If the bottom breakout is successful, the next target is the zone of 1.065.
On the GBPUSD chart, the price is falling back and heading towards the bottom of 1.22 as expected. The downward force is quite good so it is likely to continue. The point to note now is the double top pattern, with the neckline area of 1.2240. The pattern completion is very important and if this happens you can add short positions and keep the order in the medium term.
The last barrier of the bulls on the USDCAD chart at 1,387 is once again held. The strong upside force has pushed the price above 1.0 and the MA20. However, the current conditions are only suitable for short-term ranging transactions with buy orders.
AUDUSD has made noticeable changes. Price can not create new peaks and is gradually forming a two-peak pattern. The next important price area is 0.637. If it is broken, the pattern is complete and whoever reversal trade can take part in.