FOREX CHART ANALYSIS MAY 5 - AWAITING
The first session of the month did not have significant changes. Prices are still moving slowly and waiting for something to explode. Check out the chart analysis for the most common pairs today to see what trading strategies you should apply.
- President Trump has strongly revived the already successful trade war at the end of last year. Specifically, he threatened to take anti-China trade measures to punish them for shortcomings in handling the Covid-19 epidemic. In addition, he also threatened to cancel the trade agreement signed last year with China if they did not fulfill their commitment to buy US goods as promised.
- The blockade measures in the EU have been relaxed as the number of deaths has dropped to a 2-month low in most of the region's largest economies. But Russia is not one of them.
- A survey from ECB professional forecasters on Monday said: The euro-zone economy will sign a much smaller contraction than previous pessimistic forecasts, but the recovery may be slow.
- Japanese Prime Minister Shinzo Abe has asked experts to come up with a roadmap to restart the economy following new lifestyle guidelines within two weeks, after Japan expanded its emergency situation.
- Mr. Abe also said at a press conference that the clinical trial of the Avigan drug was going smoothly and an application for the use of the Remdesivir antiviral drug for COVID-19 was filed in Japan on Monday.
- A survey on Monday showed that German factory production fell at the fastest pace in April, and export-oriented companies cut jobs at the fastest pace in the last 11 years.
With USDJPY, the price still respects the downtrend line and is approaching the bottom of 106.4. Keeping the view down as it was; However, the position to sell should not be added. This should only be done after the bottom is broken. The immediate target is 105.7, the further is 105. Another point to note is that Bollinger bands are being compressed quite tightly. Breakout force can be very strong. You need to pay attention to this risk.
On the EURUSD chart, the price approached the conversion zone of 1,088 as expected. However, at present, we have no signal to support the buy order, instead the selling force is quite strong. The MA20 has been broken easily. If the penetration of the level of 1,088 is possible, the price will probably bottom 1,077. In general, EURUSD is not favorable for trading at this time.
The seller's final hold on the GBPUSD chart has been held. The MA20 and the 1,250 zone were also broken. Things are gradually getting better for the sellers. You can keep your orders. The target is zone 1.22.
On the USDCAD chart, the price has retreated slightly after rebounding sharply from the end of the bulls. But everything was okay. It is likely that the price will bounce back at 1.40. You should continue to maintain the medium-term long positions.
On the AUDUSD chart, after breaking the H4 up channel, prices bounced up from the MA20 zone on the daily chart but with little force. Currently, the price is testing the confluence zone 0.645. We still hold the view that the price is likely to retreat to the 0.62 area before rebounding and this is a potential buying point.