FOREX CHART ANALYSIS MAY 14 - ALL THE SIGNS ARE HERE
This is my analysis of the charts of the most common pairs in the forex market. You can check it out to see what forex trading strategy is suitable.
- In spite of Mr. Trump's urging, the FED Chairman reiterated the views of his colleagues, rejecting the possibility of using a negative interest rate policy for the USD.
- Another pressure on Fed policymakers is the US Congress's inability/unwillingness to provide fiscal support in the near future. Specifically, the Republican Party in the Senate rejected the new stimulus package worth $3 trillion from the House Democrats.
- Germany said it would reopen its borders with France, Switzerland and Austria from May 15, lifting the ban on non-essential contact with individuals. The German Interior Ministry said the country aims to restore full freedom of movement within Europe by June 15.
- The UK economy dropped to a record 5.8% in March as the coronavirus crisis escalated and the government sealed off much of the country, hinting at a bigger decline coming.
Yesterday USDJPY did not change much. The price accumulated and created a doji bar on the daily chart, showing the tension between the two sides. We still have a bullish view for this pair in the short term after the signals earlier this week, but there is no candlestick pattern to support the long, so please wait patiently. The potential turning point is at 106.5 when the price tests the trendline.
EURUSD once again failed the resistance level of 1.088, but this time the price created very noticeable bearish signals. With these signals, the probability of a bottom breaking out of 1,077 has increased. You can consider the exploration command. When the 1,077 zone is officially broken, add a sell position. The target is zone 1.06.
Everything is pretty good on the GBPUSD chart. The critical price level of 1.2240 is showing signs of breaking down. The decline is also showing very overwhelming. You should be ready to consider adding a short position when this area is broken down more clearly. The next price target will be 1.20.
There is not much to say about USDCAD. Prices are still rising as expected. The price target for this rally is the upper band of the range. Ranging traders can keep their long orders.
Yesterday's price movements underpinned our judgment. Sellers are still in control when the price fails to create a new peak. Besides there are many discount models. I am still inclined to complete the two-peak reversal pattern, but you should only trade when there is a confirmation signal, and now is not the time. Pay close attention to the 0.637 area.