Sep 23 2020 0
It's time to trade. Check out the chart analysis below to see what you should do today.
- Japan's factory activity prolonged the September decline mainly due to a stronger drop in output amid a struggle Japan struggled to recover from the coronavirus pandemic.
- US Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell have begun two days of parliamentary hearing. Mnuchin's remarks may be more noticeable because Powell's stance was known earlier, the possibility of his repeating itself.
- Efforts by Oracle and Walmart to secure a stake in US TikTok are in serious trouble following negative comments from both President Donald Trump and China's Global Times.
- The RBA was tougher than expected. RBA Deputy Governor Guy Debelle said the bank is looking at other policy options, namely to lower interest rates but "not to negative."
- The BoE is ready to impose new regulations for the post-Brexit banking industry.
The price has approached the 105 - 105.2 zone we were waiting for. However, the upside force is still good and there hasn't been any noticeable downside signal around this price level so we haven't sold yet. Please wait patiently. Please note should only wait for sale. If the price breaks this resistance, you should not buy because the possibility of creating a false-break when hitting the MA20 on the daily chart is relatively high. Moreover, the amplitude to the downtrend line is also not much.
What we have been waiting for so long has come. The price has broken through the important support that has maintained for the past 9 weeks. This price action has also completed the head and shoulder reversal pattern we mentioned. You guys continue to maintain the strategy of selling. The initial target will be around 1.16, further to the peak of March, around 1.15.
GBPUSD has also fallen sharply. This price action confirmed the completion of the bearish flag pattern on the daily chart. This is one of the most probable chart patterns according to Thomas Bulkowski. Area 1.275 was also broken as expected. You can maintain the old short positions and consider adding new positions. The target for this decline will be around the long-term uptrend line and the 1.250 support zone.
Price has accumulated around the confluence zone 1,333. With its current shape, we see this accumulation area closely resembling a diamond top pattern - a short-term reversal pattern. However, do not sell because the trend is on the rise and the margin is not much. Instead, we should stick to the old strategy: wait to buy around the 1.325 price range.
Our short positions have paid off. You can consider moving the Stop Loss to reduce your risk when the target area of 0.70 is close to being approached. Note the possibility of a bullish correction around this price zone. It is advisable to wait for the opportunity to replenish the position at the end of that potential correction or when the price clears the 0.70 zone.