FOREX CHART ANALYSIS OCT 7 - TIME TO ACT

Oct 07, 2020
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Today we will look at the charts of the most traded currency pairs to see what we should do.

Latest updates

  • Mr. Trump angrily tweeted and announced that negotiations around the new US stimulus package were over until after the election. The demand for USD increased sharply after this news.
  • US President Donald Trump left hospital to return to the White House late on Monday, less than a week after being diagnosed with Covid-19.
  • European Central Bank President Christine Lagarde has also hinted at new economic stimuli, who told The Wall Street Journal that the economy is looking a little more unstable and emphasized that the ECB still has “room” to lower interest rates - which are in their negative.
  • Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed over the weekend to strengthen Brexit negotiations to close the gap that has stalled negotiations. This prompted Goldman Sachs to urge its customers to buy the pound.

USD/JPY chart

forex-chart-analysis-usdjpy

The volatility on the USDJPY chart is quite modest. The price is still around 105.8. We keep our old strategy: wait for a breakout above this resistance. Then, expect the price to approach the resistance zone 106.5 - 107. You might consider buying in the short term when there is a signal.

EUR/USD chart

forex-chart-analysis-eurusd

The price has suddenly returned to the decline as a warning. The response is quite accurate with the confluence zone 1.18. You continue to hold short orders, consider adding positions when the short-term uptrend line and the 1.70 zone are broken. The target for this decline will be around 1.16.

GBP/USD chart

forex-chart-analysis-gbpusd

What we are concerned about has not happened. The level 1.30 is not broken and there is no confirmation of a reverse head and shoulders pattern. The strong bearish signal also appeared on both the daily chart and the H4 chart, so you should consider returning to sell orders. However, the target should not be too far away, only around 1,270.

USD/CAD chart

forex-chart-analysis-usdcad

We have a bear trap around 1.325, and the price is rebounding around this zone. Please continue to hold long positions. The initial target is around 1.341. Further would be 1.350.

AUD/USD chart

forex-chart-analysis-audusd

The perseverance paid off. The price fell sharply around the 0.72 resistance. Down signals appeared simultaneously on the daily and H4 chart. Continue to keep short positions. You may consider adding positions at the 0.715 zone when there is signal or when the 0.71 zone is broken. The target for this decline is around 0.70.