Sep 15 2020 0
Based on what happened in Brittain and EU today, we can expect big changes to the Euro and the Pound. Let's check out the charts to see what forex trading strategy we should use.
- Prime Minister Boris Johnson on Monday won a majority in the vote on the domestic market bill (340 votes vs 263 votes), although he faces a growing "rebellion" between lawmakers, who argued violating international law would undermine Britain's credibility.
- Oracle took the lead in the race to acquire Tiktok America shortly after Microsoft announced Bytedance - the company that owns Tiktok - had no intention of selling. However, it is still unclear whether the deal will be accepted by regulators in China and the US.
- At the weekend, Pfizer (NYSE: PFE) CEO Albert Bourla said the vaccine the company is developing with German BioNTech (NASDAQ: BNTX) could be distributed in the US later this year. AstraZeneca (NYSE: AZN) has received approval from UK authorities to continue phase 3 testing of vaccines developed with Oxford University.
- Mood for the pound rose earlier this week as market concerns over the Domestic Market bill proposed by Boris Johnson temporarily eased. Investment bank Goldman Sachs (NYSE: GS) said the rate of a no-deal, damaging Brexit is "significantly lower" than what investors and markets perceive (based on variable rates). short term) and the current GBP price is attractive.
Those who persist in short positions are paying off. Price is breaking the remarkable confluence zone 105.7. You should remember to move Stop Loss to minimize risk. New positions may also be added. The target for this drop will be around 105.
Price action on the EU pair can make many people frustrated. After the bearish signals, the price is slowly accumulating and ascending towards the upper boundary of the range. However, looking closer, we can see very timid upside momentum and an increasing risk of the sellers coming back as the price approaches the upper boundary of the range. For today's session, we will continue to maintain short positions. In case there appear new bearish signals around the 1.192-1.20 zone, new short orders can be considered. The original target is still the bottom of the range. Pay full attention to Stop Loss when trading.
The price did not continue to create a new bottom but moved up to the transition zone around 1,288 and created a noticeable bearish signal. Many traders may have turned to short in time with this signal. We continue to maintain short positions. The target will be a confluence area of 1,265 around the long-term uptrend line. Be wary of a strong rebound when prices approach this area.
There was no noticeable price movement on USD/CAD chart at the beginning of the week. Prices are still moving sideways in a narrow range. We maintain the old strategy: keep holding long positions and expect the price to retest the resistance zone at 1.325 soon. As the price approaches this zone, one should consider risk reduction moves. The addition of positions should only be performed when this price area is clearly broken.
New developments are gradually unfavorable for traders who are holding short-term positions, because the accumulation will benefit the mainstream uptrend. At the moment, pay close attention to the two price zones 0.72 and 0.73. If the price breaks clear above the 0.73 zone, a move to the 0.74 zone is likely. We need to abandon selling intention.