Sep 25 2020 0
This is the analysis of the charts of the most common currency pairs in the forex market.
- Treasury Secretary Steve Mnuchin said he would resume talks with House Speaker Nancy Pelosi on another economic bailout package.
- Last week's US unemployment data did not decrease but continued to rise higher than expected (870k vs 845k), negatively affecting market sentiment.
- The dollar continues what many believe to be an upward correction in a mainstream downtrend, driven by risk aversion and the lack of signals that the Fed will continue. Continuing to have more measures to loosen in the coming time.
- EUR continued to weaken after there was no change in the refinancing program "TLTRO" of ECB.
- President Donald Trump refused to pledge a peaceful transfer of power following November's election, arguing again (but giving no evidence) that the widespread use of postal ballots Electricity will lead to election fraud. Meanwhile in Louisville, Kentucky, protesters shot and killed two police officers during the riot.
Price did not create a really noticeable signal when it approached the MA20 on the daily chart. Currently, it still accumulates around 105.5. Therefore, our strategy remains the same: avoid entering now and keep observing the 106 zone. If the expected downside signals occur, short orders can be considered in the short term.
The price bounced up when it approached the lower boundary of the descending channel, creating a rotating sub-pattern on the daily chart. Therefore, it is likely that there will be an upside correction in the short term. However, the downfall trend remains unchanged. You can consider partially exiting the order or moving the Stop Loss and waiting for the opportunity to add new positions when the price retests the transition zone 1.72 to 1.75.
The bearish momentum on the GBPUSD chart has slowed down but it is still below the 1,277 bottom formed earlier. This is a good signal for the sellers. We continue to maintain existing short orders. The target remains unchanged: the long-term uptrend line extends to the support zone at 1.25. In addition, you can drag Stop Loss to reduce your risk and do not enter new orders.
The price dropped rapidly and strongly when approaching the 1.34 price zone. Currently, it has also created a bullish signal around the MA20 on the H4 chart. However, it is not advisable for you to buy at this price zone because the possibility of further price correction is quite high. Instead, wait patiently for a buying opportunity around the lower boundary of the rising channel when there is a signal. Don't get fear of missing out!
The price has continued to plunge, broke out, and maintained below the 0.71 level. For short-term traders, you should consider exiting short orders. Wait for new opportunities after corrections. Those who trade in the medium term head and shoulder can continue to hold orders. The initial target is the 0.695 zone.