FOREX CHART ANALYSIS NOV 17 - TO TRADE OR NOT TO TRADE
Check out the chart analysis for today to find the most suitable forex strategy.
- The collateral sold heavily during the early US session after Moderna reported that the vaccine it was developing was 94.5% effective.
- According to data from Johns Hopkins University, there are more than 54 million cases worldwide and more than 1.3 million deaths as of November 16, of which, the US accounts for more than 11 million cases. Michigan and Washington state on Sunday imposed new restrictions on gatherings, including the discontinuation of in-house restaurant service, to slow the spread of the virus.
- Economic numbers from Japan show that the world's third economy out of recession, with growth reaching 21.4% in the third quarter, is slowly recovering from the damage caused by the coronavirus pandemic.
- China's industrial output also rose at a faster rate than expected in October, while retail sales continued to recover.
- RBA Governor Phillip Lowe reaffirmed the RBA's stance on negative interest rates, which has not changed much since before, generally following BoE's approach, that is, waiting and watching.
The bear's pressure created on USD/JPY chart after the first session of the week is quite clear. The resistance at 105 was held and the selling was quite strong around this price zone. We keep short positions with target around 104. Alternatively, we might consider new sell orders if 104 is broken.
After the bearish signal around 1.185, the price dropped quite weakly and then turned up. It is now approaching the top of the previous bearish candlestick pattern. Short-term short-term users who have not escaped their positions in time may be stuck. Today, we focus on observing the price zone of 1.190. Before this price zone, if there are signs of decline, you can still consider short-term orders. This strategy will be rejected when the price breaks the 1,190 zone.
There was no noticeable change in the first session of the week. Currently, it is still fluctuating around the 1.320 price range. We persist with the old strategy: wait to buy around the bottom of the up channel, the 1.30 zone.
The price did not make a bullish signal around the 1.31 zone, so we should not enter new orders. Currently orders to buy previously (Stop Loss moved) may have been stopped out, but we still need to ensure profitability of these orders. We will temporarily stop buying as the selling seems to strengthen. Pay attention to the area 1.30. Price action in this area will determine our next action.
The undesirable scenario happened: price approached the peak of 0.735. The previous head and shoulders reversal pattern also failed. However, there is still a possibility for a double top pattern around this price zone. Unfavorable conditions. We temporarily stop trading AUDUSD and wait for a new confirmation signal.