Nov 26 2020 0
The most remarkable point in the market at this time is probably the USD re-testing the 92 level. Whether it can penetrate this zone or not will bring big changes to the whole market.
- The dollar continues to weaken, risky currencies are still being sought as investors seek further stimulus from the new US administration amid significant advances in the Covid-19 vaccines.
- The USD is also close to a two-month low against the AUD and a two-year low against the NZD, both of which are considered a barometer for the risky sentiment of the market.
- One of the Bank of England (BoE) interest rate fixers, Michael Saunders, said the long-term effects of Brexit on the UK economy could be greater than the Covid-19 pandemic.
- The head of the EU Commission has said that it cannot guarantee a trade pact with Britain after the country leaves the Union, and that the coming days will be very important, adding that the bloc has been preparing for the other scenario.
- China said it found many Australian coal imports did not meet environmental standards, further weighing on the rapidly deteriorating relationship between the two countries.
The price continues to accumulate in a narrow range and create new doji patterns on the daily chart. However, this does not help us much. Today's session should notice the top of the two doji patterns on the daily chart. If it is disabled, it will likely re-test the 105.5 area. However, I do not encourage you to trade in current market conditions.
The price hasn't broken through 1,190 yet, but it seems to be a matter of time as the price is testing this zone continuously. Yesterday session there appeared a bearish pin bar pattern on the H4 chart but is very weak, and is about to be invalidated. I repeat our strategy: exit all short if still available. In case the price succeeds 1.19, anyone following the short-term uptrend can consider buying and setting a target of 1.20.
The price is showing signs of wanting to break the peak when the level of retreat is very weak, but the amplitude to the next important resistance zone, around 1.345 - 1.350, is very little. Trading is relatively risky. You should continue to observe. Whether a bearish signal appears around this resistance or penetrates it will give us the next trading clue.
USD/CAD continues to be quite boring. There is not much new to say about this pair. We continue to watch and wait for the price to return to important areas, especially the 1.295 bottom for more clues.
The price has not had a breakthrough after the breakout as expected. However, this is not a concern as prices are still accumulating above the breakout zone. We continue to maintain long positions with a target at around 0.740 - 0.745.