Oct 01, 2020

Today we will analyze the charts of the most traded currency pairs in order to figure out a suitable forex strategy.

Latest updates

  • Investors remain ignorant of both candidates' agendas, except to raise suspicions that Trump is willing to accept defeat and peacefully transfer power;
  • US stocks are slumping after unclear results from the first presidential debate combined with news that Disney will cut a series of staff (expected to reach 28,000), causing new difficulties. for the labor market;
  • Both ADP labor data and adjusted GDP were better than expected;
  • The President of the Central Bank (ECB) - Ms Christine Lagarde signaled that they can comply with the US Federal Reserve on a formal commitment to inflation above the 2% target at the end of the review of the monetary policy strategy. your currency next year;
  • In Asia, previous Chinese purchasing management (PMI) data showed that the recovery continued but has flattened out after rebounding sharply during the summer.

USD/JPY chart

chart analysis USDJPY

Price created a false-break around the 105.7 peak, accompanied by a bearish engulfing pattern on the H4 chart. This pattern can provide short-term bearish momentum and push prices to the lower boundary of the current accumulation zone, the 105.2 zone. The past price action still doesn't have a significant impact on our view. Continue selling strategy when the price goes up to 106 when there is a signal or when the price breaks down to 105.2

EUR/USD chart

chart analysis EURUSD

After the pin bar signal around 1,175, the price fell as expected. Those who have entered short can continue to hold positions. In case the price continues to recover, pay attention to the round number 1.18. If there are signs of decline, we can still continue to trade this area. In case both of these price ranges fail, we will suspend short orders. It is likely that the price will go to the 1.19 zone.

GBP/USD chart

chart analysis GBPUSD

As warned, the narrow cumulative price zone was very unfavorable for the sellers, and the price broke it yesterday. This price movement is disabling the pin bar pattern previously created on the daily chart. We keep the old strategy: wait to sell around 1.3 when the signal comes. It is necessary to place a tight Stop Loss and pay attention to the breakout of this price zone, because if it falls, the downward structure will be broken.

USD/CAD chart

chart analysis USDCAD

Price has followed our original scenario without further breaking out. It is currently re-testing the bottom of the uptrend channel with a fairly strong decline. The bullish signal has not appeared yet so we are in no hurry to enter a long order. Wait for the signal around 1.125-1.128. Be careful because a bear trap may appear.

AUD/USD chart

chart analysis AUDUSD

The price broke the weak resistance zone of 0.715 and left some of the short brothers soon stuck. This breakout makes the possibility of a re-test of 0.72 level very high, and this is a nice confluence zone for you to return to the downside. Be ready to sell when there is a bearish signal around 0.72.