Oct 27 2020 0
A new US Supreme Court judge? UK consumers’ confidence drops? Two new vaccines for the Covid-19 are getting positive results. The forex market is reacting strongly to those news and more. Check out what forex trading strategies you should choose in the article below.
- Amy Coney Barrett - who was nominated by President Donald Trump - to enter the US Supreme Court judge seat, replacing Ginsburg's empty chair left behind, could be approved by the Senate on Monday. This move promises to make the Supreme Court more inclined to the right for many years to come.
- The rush to approve Ms. Barrett for the position has caused a bitter split between Democrats and Republicans. Trump has repeatedly said he wants Mrs. Barrett in that position to prepare for a disputed election.
- The polling firm led by YouGov and the Center for Economic and Business Research said that UK consumer confidence fell for the first time in six months in October, according to the latest data. This is thought to come from concerns related to new blockade orders aimed at curbing the spread of the disease.
- News about the vaccine being developed by University of Oxford and AstraZeneca (NYSE: AZN) Plc induced immune responses in both the elderly and the young is positive news. However, it is not enough to dispel anxiety as European leaders have warned of the difficult months to come as the COVID-19 pandemic resumes, forcing the authorities to impose new restrictions. to try to curb the spread of the disease.
- USD recovered in the first session of the week due to the return of shelter demand in the context that both the US and EU recorded record high numbers of infections, along with doubts surrounding the new US stimulus package.
Prices did not change significantly after the first session of the week. It continues the accumulation area of the bearish flag and re-tests the 105 transition area. We maintain the old strategy: hold current short positions and add positions when the pattern is complete or when there is a bearish signal around the 105.5 resistance zone above.
There was not much volatility on the EURUSD chart. It is still hovering in the range of the range and has yet to approach two price ranges that we are looking to buy. Therefore, do not enter new orders under the current market conditions. Instead, continue to ambush buy in two zones: when the price re-tests the lower boundary of the uptrend channel and when the price clearly breaks down of the 1.19 zone, helping to confirm the continuation of the uptrend.
The price is still fluctuating around the 1.30 zone, which we are watching to buy. However, the bullish signal acting as a "trigger point" has not appeared, instead a very remarkable bearish pin bar candle bar. This price action can increase the possibility of this price breakout at 1.30 to return to 1.285 (note not to sell in this case because the bullish structure is still present). Therefore, be patient and do not enter buy orders too early!
The price is on its way up to approach the 1.325 price zone as expected. Notice that we eliminated the sell watch scenario around the 1.32 zone. Instead, it is the 1.325 - 1.330 zone when the signal comes. If sell orders are activated, we expect the price to get back to the 1.31 zone soon.
The price still respects the resistance zone of 0.715 around the upper border of the down channel. This is an area where we watch to sell, but the signal is still too weak, so we should not enter all positions, but only probing orders. It should be noted that the longer the price fluctuates in this area, the possibility of it being broken will increase.