FOREX CHART ANALYSIS NOV 12 - MAINTAIN YOUR POSITIONS
Here are the most significant things we found after analyzing the charts today.
- The NZD rallied sharply following today's Reserve Bank of New Zealand (RBNZ) policy meeting. RBNZ has kept interest rates unchanged and introduced a new loan program worth 100 billion NZD. The new loan scheme announced by the RBNZ today demonstrates their reluctance to apply negative interest rates, at least for now, and it has caused changes in this market.
- It is clear that the NZD is on the rise after this meeting, but the gains may not be sustained as much of the "optimism" is priced at the moment.
- The ongoing talks in London are expected to last until the end of the week, but EU envoys do not expect breakthrough new updates as the Brexit issue will lie, according to a report from Reuters. on the agenda at the November 18 meeting of the EU ambassadors.
- Goldman Sachs (NYSE: GS) has raised its S&P 500 (SPX) target by 2020 to 3,700 points and by 2021 to 4,300 points after the positive announcement of the vaccine and supported by Mr. Biden's victory. The European and UK stock markets also raised their targets by 11% and 13%, respectively, from the current levels.
The bullish pennant pattern - which we observe on the USDJPY chart is also complete but the previous high has not been broken. Instead, it is downward adjustment. We keep waiting for buying opportunities to appear in the lower zone from 104.5 - 104.1. Whoever has a buy order then continues to keep the order.
Prices are continuing to go down as expected after the bearish signals appeared earlier this week. Currently, target 1.175 has been approached, but it has not been broken, so we cannot add new positions yet. We continue to maintain this old tactic. In addition, when the price re-tests the upward channel line, around 1.180, and when a bearish signal appears, we may also consider adding a short position.
As expected, there appeared a bull trap around the confluence area from 1,320 to 1,335. The bearish candlestick pattern also appeared on the H4 timeframe, and the correction began. When the price breaks the 1.317 zone, it is likely to fall deeply to the zone 1.300 - 1.305. Then, we shall wait for the bullish signals and turn back to buy. We do not encourage selling during the current correction.
Prices continue to recover from bear traps. Currently, the barrier 1.31 is about to be approached. Those with bottom-fishing orders from below can consider hedging measures (move SL or partially close orders). It is not excluded that the sellers will return to around the 1.31 zone. Therefore, only add new buy orders when it is completely broken.
A mini reversal candlestick pattern in the shape of a head and shoulders pattern is appearing on H4 timeframe. This combined with previous bearish signals increased the possibility that the price will continue to correct deeply. You might consider short-term trades if the pattern is complete. When the price penetrates 0.725, for those who follow the uptrend, it is important to see the current pattern fail and the price to break the top of 0.735 before considering entering orders.