May 26 2020 0
The US market was off for the first session of the week so there weren't many fluctuations. Let’s hope today's session will be more exciting. Check out the following chart analysis and decide for yourself what is the most suitable forex trading strategy.
- BoJ's governor still clung to a bleak economic viewpoint even after Japan ended its blockade.
- German business morale improved in May, recovering from the sharpest decline in the month before the number one EU economy returned to normal operation after weeks of blockades, data on Monday showed.
- Japanese Prime Minister Abe Shinzō said on Monday that an emergency would be lifted for all of Japan and that the country had been able to control the spread of the virus COVID-19 within two months.
- Protesters took to the streets in Hong Kong to protest the introduction of a new security law that they believe threatens the foundations of the city's freedoms and privileges. Police responded using tear gas and water cannons to disperse protesters, carrying out more than 100 arrests. US-China tensions also rose.
What buyers were concerned about yesterday did not happen: The price did not break the newly formed uptrend line and kept going up, testing the 108 area. Therefore, our uptrend view is still maintained. Look for the opportunity to add long positions when the price breaks 108. The Stop Loss point also narrows below the bottom of 107.3. If this zone is broken, it will alert an upside problem and the price may move sideways in the range area.
After the bearish patterns on both the daily chart and the H4 chart, the price is blocked at 1.088 with some resistance signals such as the pinbar on the H4 chart and the doji bar on the daily chart. However, the rebound was not strong and the price was still below the MA20. Continue to expect prices to penetrate the 1.088 zone. You can add a short position when this happens. The target is the lower boundary of the range.
The hesitation of prices has brought more and more insecurity to the sellers. Price has not been able to return to the downside while still above the trend line. Today, we need to focus on observing the zone of 1.227. If this resistance is broken, a short-term uptrend structure will be confirmed and we may need to abandon short positions. However, with the current situation, we can still keep the short positions.
Nothing attractive on the USD/CAD chart. Price could not surpass the level 1.40 and MA20 on the daily chart. The trend is not clear so we should avoid trading for the time being.
AUD / USD is also gradually becoming less attractive. Price is trying to retest the peaks but very timid. Moreover, the area of resistance around the current level is very dense, so the risk of buying in is very high. Selling is not attractive because there is no clear signal. In short, we should spend time observing AUD/USD before there’s a new signal to take action.