FOREX CHART ANALYSIS SEP 22 - USD & AUD
There are big hits to the USD and AUD today. Let's analyze the charts and see what we should do.
- FED officials repeatedly urged the fiscal stimulus from the US Government, and continued to lower their expectations about the possibility of an early rate hike.
- Trump's executive orders targeting TikTok and Wechat have encountered major hurdles. Specifically: A federal judge in California blocked Trump's executive order on the closure of the multi-app WeChat platform in the US. Meanwhile, the Commerce Department has also suspended a ban on downloading the streaming video app TikTok.
- British Prime Minister Boris Johnson urges people to work remotely if possible, in an effort to limit the spread of the Covid-19 epidemic. The government's chief scientific advisor, Sir Patrick Vallance, said during a press conference that the UK faces 50,000 new cases a day by mid-October if the new measures are not being applied now. Chief Medical Advisor Andrew Whitty said Britain was "in the wrong direction."
- The coming comments of the President of the European Central Bank (ECB) Christine Lagarde could put some pressure on the euro. If Lagarde shows any signs of concern about the relative strength of the currency, it could encourage pressure to sell the single currency to increase.
The price has been adjusted sharply as expected. The MA20 has been approached but has not shown any bearish signals, so we will wait for the next stop - 105 - 105.2. If the price fails to break through this range and produces bearish signals, we can consider short again.
Prices fell sharply in the first session of the week and once again tested the bottom range of 1.72. This price action is further clarifying the possibility of completing the head and shoulder pattern that we noted earlier. If the price breaks the 1.72 zone (neckline), the above pattern will be completed. The possibility of a strong drop to the zone 1.60. We continue to wait to sell when there is a confirmation signal.
The price broke the rising channel and the price zone of 1.287 was expected. It is currently at the bottom of August. Expect the bearish momentum to resume. Those with short orders can hold and move Stop Loss to reduce risk. Consider adding positions when the price breaks down to 1.275. At that time, the targets will be the long-term uptrend line and the price zone 1.250 respectively.
The price finally broke the 1.325 zone. The increasing force is very good, but the price is preparing to approach the confluence area of 1,333, so the possibility of a decrease is relatively high. Do not enter an order at the current price range. Patiently wait for the retest to 1.325 and start 'long' orders upon confirmation signal.
AUD/USD has become more attractive following yesterday's price action. The giant head and shoulders reversal pattern is showing signs of completion. You can combine with the current rising momentum to consider short positions. Two potential entry areas are: when the price retests the 0.726 zone, or when the price breaks the 0.72 zone clearly. The initial target target will be the 0.70 zone, and the further possible the 0.695 zone.