Nov 27 2020 0
Yesterday's low liquidity did not cause noticeable volatility. The USD index remains at the 92 support level without a breakout. In the session today, the US market will have a holiday and no important data. If you still have transactions, you should be careful about the surprise.
- Irish politician's Coveney commented that the Brexit negotiations are at a 'sensitive point'.
- New Zealand seeks to prevent a housing bubble due to low interest rates. RBNZ plans to reintroduce loan restrictions due to concerns of housing bubbles. The RBNZ Governor said: "while the RBNZ has" preparations "for negative interest rates, we are not saying that it will apply." The NZD strengthened its upside momentum on this news.
The price did not break the top of the doji formed on the previous daily frame but is falling below, approaching the resistance at 104. In case the price penetrates this zone, it is likely to retest the 103.5 zone followed by 103. However, the price is not moving clearly and is stuck in the middle of the range. You should avoid entering the position at this moment.
Prices did not break out after the breakout as expected. Worse yet, selling pressure is increasing and creating a doji on the daily frame. This is a warning signal that the force of buying is not as strong as we expected. If you have buy orders, keep on holding. The target remains around 1.20. However, in case the price breaks down to the bottom of the doji pattern mentioned above, consider exit early to preserve capital.
The price has failed to break above the 1,340 barrier, at least for now. Although it is a bit early, you should also pay attention to the Double Top model that is forming. In case the price successfully breaks down of the short-term uptrend line, a downward correction will likely appear in the 1.320 zone. However, we still do not recommend trading GBP/USD at this time. The signals were not clear and the RR ratio was not good.
USD/CAD continues to move slowly, accumulating in the short-term down channel. There is nothing we can do with it right now. Continue to watch and wait for price action at key resistance zones, especially 1.295, for new clues to the next direction of price.
AUDUSD exchange rate was almost unchanged in the past session. It remains above the upper boundary of the range that has just been broken, and this is a good sign. You should continue to hold on to buy orders and aim at around 0.740 - 0.745.