Nov 25 2020 0
Today we will be focusing on the charts. The followings are the analysis of the charts of the most trade currency pairs.
- The dollar saw sell-offs in Tuesday's session as the transition to power in the US became more apparent and the inclusion of Janet Yellen as the country's next Treasury Secretary bolstered expectations. on an expansionary fiscal policy under newly elected President Joe Biden.
- The number 1 economy EU has recorded two consecutive positive data in Tuesday, namely: revised quarterly GDP increased by 0.3% to 8.5% compared to previous data. The country's business environment index was also better than expected, reaching 90.7 compared to 90.3. Experts say that the country has not suffered too much impact from the new blockade to the present.
- UK Finance Minister Rishi Sunak said on Tuesday he is determined that Britain will remain the global leader in asset management after Brexit.
- The New Zealand dollar gained 1.1% on Tuesday, to 0.7, a level not seen since June 2018. The currency rose in value after Finance Minister Grant Robertson released a letter to the central bank of the country. This expressed concern over how low interest rates have affected home prices, which has pushed the market away from negative interest rate valuations.
- Germany - holding the EU presidency - is optimistic about finding a solution to the European Union's budget within the next few days.
The price fluctuates but does not change much from the previous price. These new price actions are also not causing us to take any action now. We continue to expect the price to move up and retest the upper long term trend line around the 105.5 price zone. Wait for price action around this zone then decide.
We were wary of not adding new positions after the price formed a bearish pattern on the H4 chart. At present, the 1.19 zone is being re-tested again, suggesting that the selling force around this price zone is too weak. The possibility of a price break and go up is very high. If you still have short orders, consider closing positions or moving Stop Loss to 1.19. Sell tactics will be rejected when the price breaks the resistance level. Then, expect 1.20 to be approached.
Prices continue to accumulate, creating a pennant pattern instead of falling after previous bearish signals. This is still not a favorable condition for trading decisions. You should wait for new signals from marked resistance zones.
Price is showing signs of breaking the support zone 1.304. It is likely to decrease to the area of 1,295, the lowest price in many years. However, the range is still quite narrow and we should not enter short orders at this time. Further price action at this support zone will provide new clues as to what we should do next.
Finally, the range was broken up. Price remained above 0.735 after the pullback. This is a good condition for you to enter buy orders. In the short term, let's expect the price to approach the resistance zone 0.740 - 0.745.