Oct 14 2020 0
Here we have the chart analysis for the most traded pairs. Check them out to see how you should trade today.
- The U.S. dollar held up against most currencies on Wednesday as new questions about the coronavirus vaccine and a lack of a deal on additional U.S. fiscal stimulus fueled the outflow shift. capital to safer assets.
- President Donald Trump returned to the campaign and told his supporters he felt "healthy" and declared that he was now "immune" to the Covid-19 virus. Health experts questioned his second claim because it came in the context that the US confirmed the first Covid-19 reinfection.
- Hope for an early breakthrough in getting vaccines to the general public was compromised after Johnson & Johnson decided to suspend phase 3 trial due to a disease of one study participant. can explain.
- Europe's economic recovery looks much more uncertain after the second wave of infections damaged general sentiment and increased unemployment as governments narrowed subsidy programs. salary.
- The European Union's Brexit negotiator said Tuesday that there has been some progress but not enough.
- According to a monthly survey released Tuesday, US small business confidence last month rose to its highest level since the outbreak of the coronavirus epidemic earlier this year with multiple companies taking note of an increase in sales.
The price soared around 105.2, but showed signs of being prevented when retesting the short-term uptrend line that has just been broken. The short-term uptrend structure has not been violated yet, so it is difficult for us to trade this transition period. Observe patiently, especially around 105. If it breaks, the price will end the short-term uptrend and return to the mainstream downtrend.
Price followed the second scenario: penetrating the 1.175 zone and approaching the 1.173 mark. The bears are showing the return of dominance and we might continue to keep the sell orders. In case you have not entered the order in time, you should look closely at area 1.173. If it breaks, it confirms the end of the short term uptrend. Then we will add sell orders.
The sharp decline in prices is causing great concerns for buyers following the previously formed bullish reversal pattern. However, structurally it's not to the point where we have to give up our long orders entirely. If the price still creates an uptrend signal around the 1.285 - 1.290 zone, it is still possible to consider buying (the signal needs to be strong and clear, priority is on the daily chart). The RR level is quite good. Only when it is completely destroyed do we decide to stop buying.
The price is showing signs of forming a rounding bottom pattern around 1.310 - 1.315. When the pattern is complete, it is likely that there will be a quick correction upwards. However, our strategy is to wait to sell around the 1.32 zone. In case the price suddenly breaks below 1.310, we can consider sell orders.
The price has not been able to penetrate the channel line and the 0.715 zone as expected. However, on the daily chart, there was also a signal in favor of the sellers - a bearish three-candle reversal pattern. Hence, we keep the old strategy: maintain existing short positions and replenish positions when price breaks the channel. The initial target is 0.71.