Oct 20 2020 0
- As negotiations between Pelosi and Treasury Secretary Steven Mnuchin proceeded earlier this week, it was reported that both sides still had significant differences, which caused concern for the market and US stocks having an early session. week off point.
- Šefčovič - Vice Chairman of the European Commission said: EU will not sign a Brexit agreement at any cost. Some comments from Šefčovič show that the EU mainly wants to announce that it is ready to return to the negotiating table this week. But without the will to compromise on both sides, it's hard to see new developments.
- Drug maker Pfizer Inc (N: PFE) said late last week that it may have a coronavirus vaccine in the United States later this year.
- Investors are also comfortable with China's economic recovery in the third quarter as consumers shake off caution about the epidemic shown by rising retail sales, industrial output also on the rise as expected though GDP growth rate is weaker than expected.
The price continues to slightly recover and shows signs of breaking the resistance at 105.5. This price action increases the likelihood of a continuation of the range (range 105-106). In case you have buy orders around the bottom of the range, you can keep the order. However, do not enter new orders at the moment because the RR ratio is not good. In addition, there are two scenarios that we might consider short-term sell orders: when the price re-tests the confluence zone 106 with bearish signals and when the price breaks the 105 support zone.
EURUSD had a strong bounce and may have stopped out of some previous sell orders if you left your stop loss. This price action is threatening a new downside momentum to form. We will pause short orders and observe the 1.183 area closely because if it is breached, it is a confirmation of the continuation of the previous broken uptrend. In the event of a bearish signal we should wait for further confirmation on the daily chart before returning to sell orders.
Price recovered in the first session of the week but was strongly rejected at the end and created bearish signals on both the daily chart and the H4 chart. These are negative signals for the bulls. We should not add new commands at this time, only maintain existing commands. Pay special attention to the two price zones of 1.31 and 1.285. These are important price zones that determine the next direction of price.
There appears to be a bullish engulfing candlestick pattern on the H4 chart at the moment but in general it is not worrying because it is still within the expected uptrend channel. We stay short and move Stop Loss to reduce risk. I expect the price can approach the zone soon 1.31, further than the bottom of September.
The bearish flag pattern - the one with an extremely high probability of winning according to Thomas Bulkowski - that we predicted yesterday is complete. This is a very good signal for the sellers. Hope you guys have been replenished as recommended. Expect the price to approach the bottom of 0.70 soon. In case the price penetrates the 0.70 area, it is necessary to carefully watch the breaking force before adding new orders to avoid bear trap.