FOREX CHART ANALYSIS SEP 17 - BIG NEWS
There are a lot of important data being released today. Let's see how the charts react to those data.
- The Federal Reserve kept interest rates in place after the two-day meeting, reiterating that the easing policy will be held for a long time to support the economic recovery.
- The Yen rose to its highest level since July when Yoshihide Suga was confirmed to take over as prime minister. The strength of the yen is partly tied to the general recovery of the Asia-Pacific economy promoted by China. In addition, the appreciation of JPY is also due to the overall weakness of the dollar since Fed Chairman Jerome Powell announced that the FED will adopt a new inflation policy.
- The European Union's top official has announced plans to cut carbon dioxide emissions faster and more than planned. The EU is currently aiming to reduce CO2 emissions by 55% from 1990 levels by 2030, instead of the 40% cut that was previously envisaged. This could be the prerequisite for long-term efforts to impose a carbon border tax on imports.
- New US retail data - the first month after the expiration of additional unemployment benefits - fell short of expectations, which is worrying.
The selling was so strong that the price did not correct around 105, but broke through this area. We continue to maintain a selling strategy. Anyone with short orders can continue to move SL. Others may consider entering a new position around the current price range. Those who are more careful can wait for the price to approach the MA20 for better prices. Our current target will be the bottom for July - the 104.2 zone.
After days of persisting in keeping the short order, you guys got it back. The price is on a very good downtrend towards the range bottom. We continue to hold these orders and move the SL to reduce risk. We should only add new short positions when the price explicitly breaks below 1.1725.
Unlike EURUSD, GBPUSD went up yesterday. Anyone who has old short positions and has moved SL may be stopped out. The bearish flag accumulation zone is continuing to consolidate. The important 1.30 conversion price zone has been approached (you will see more clearly on the daily chart), but there has been no noticeable decrease signal, so it is not possible to return to short orders. Please wait patiently for more.
USDCAD fell and tested the range bottom yesterday but recovered quickly. The buying force is being shown quite clearly. Please continue to maintain your buy orders and expect the price to approach 1,325 today. Then we should take actions to reduce the risk. Only add buy orders when this 1.325 zone is clearly broken up. Avoid entering orders too early because it may lead to bull traps.
The price re-tested the 0.735 mark but then quickly fell back. The selling force is getting stronger but I don't appreciate AUDUSD at this time. The possibility that the price will decline to the 0.72 zone has increased but the RR level is not good enough. Avoid trading at the moment.