Oct 13 2020 0
Check out the chart analysis for today to find the most suitable forex strategy.
- A Reuters report said Johnson & Johnson halted the COVID-19 vaccine trial due to a participant with an unexplained illness. A move has partly caused anxiety for the market.
- Market is changing expectations on the stimulus package. Investors are now betting more on the possibility that the new fiscal stimulus will be passed next January, under the new administration.
- China moved to curb the CNY's gain over the weekend by easing restrictions on betting against its local currency. In response, the USD rose 0.8% against the CNY in overseas markets, to 6.7460.
- Kozo Yamamoto, head of the Council of the Liberal Democratic Party (LDP) on financial affairs, said the BoJ risks being overtaken by the private sector who can launch their own digital currencies. and possibly weaken the yen.
- Andrea Enria, the head of the European Central Bank's (ECB) supervisory board rang alarm bells in an interview published on Monday that banks in the bloc should ensure they have one. Estimates on bad credits as they release quarterly updates in the coming weeks.
Prices fell relatively sharply in the first session of the week. Although the up structure remains intact, the channel has been broken and this is a negative sign for the bulls. Our plan is to stimulate buying around 105.2 in the short term. However, the signal on the H4 chart is very weak, not to mention the decline on the daily chart is quite strong. Therefore, we should not enter the order yet at this time. Continue to observe patiently and pay more attention to the 105 zone. If this price zone fails, the newly formed uptrend will be officially broken.
The price is retreating slightly and has not changed much so we have not had new signals to take advantage of. In today's session, we need to focus on observing the price zone of 1.183. If it breaks, there is a high probability that the price will move to the zone of 1,190 and especially the zone 1.175 with two possibilities:
- If it holds and produces a noticeable bullish signal then it is likely that the up channel will continue. You might consider buying in the short term.
- If it is completely broken, the price might approach the 1.170 area and soon return to the downtrend. Then, you can consider short orders.
The price continues to increase slightly after confirming the inverse head and shoulder pattern formation. We maintain a buy strategy. Those who have long orders can keep. Anyone who has not entered the order can expect a slight retreat to the lower border of the uptrend channel and buy in when there are signals of increase. The target for this rally is still around 1.325.
The price has suspended the decline around 1.310 - 1.315, but the recovery force is very weak, so we continue to maintain the selling strategy. Two price zones suitable for this are when the price retests the 1.32 level and creates a bearish signal and when the price completely breaks the 1.310 - 1.30 zone. The target will be around 1.30.
The price failed to break through the seller's last stop and plummeted. You can continue to maintain sell orders and expect that the price can soon break the short-term uptrend line. If it is completely broken, you might consider adding short positions. The target will be around 0.71.