FOREX CHART ANALYSIS SEP 8 - WHAT TO TRADE?
I have found some really interesting signals on multiple charts today. Let's take a look at them to see what forex trading strategies we should use.
- Japan's economy was much narrower than originally estimated in the second quarter due to capital spending affected by the coronavirus crisis, thereby highlighting the challenge policymakers face in preventing further degradation.
- The Financial Times reported that Prime Minister Boris Johnson's new plans would revive the need for a "hard border" on the island of Ireland, which removes a compromise contained in the departure agreement last October, prompting talks. Brexit judgment is in danger of collapsing.
- A weaker dollar is the latest headache for the SNB. The data shows that the SNB seems to continue to intervene even as the CHF depreciates against the EU currency, suggesting that they are not focusing solely on the EUR.
- The Fed's change in inflation strategy has lengthened the dollar's recent decline against other major currencies and is influencing policy-making in the EU region.
During the first session of the week, the fluctuation range of USDJPY was just below 30 pips. There are no more noticeable signals, so we still keep the old view: In case there are still short orders probing the bearish engulfing pattern formed at the end of August, you can keep the order. Place Stop Loss above this pattern. Avoid adding new orders.
Price is slowly approaching the bottom of the two previously formed bullish pin bars. This is a good sign for the sellers, showing that the buying force is not strong enough to continuously push prices higher. You can continue to maintain short orders, but you should move SL to reduce your risk and not enter new orders at this time. Wait for the 1.70 zone to be broken to consider adding positions.
The most noteworthy session yesterday was GBPUSD. The price broke through the bullish channel and invalidated the previously formed bullish pin bar pattern. Selling pressure is good. You guys continue to maintain short orders. Consider adding positions when the price re-tests the 1.325 transition zone or the MA20. The short-term target will be the support zone 1.30.
Prices recovered slightly after falling from the 1.315 transition zone. Currently the 1.30 zone has not been broken, so we are not adding a new short position. You can keep old short positions. Place the Stop Loss above the 1.315 zone. Observe carefully this price area. If the price breaks above, the next price to be noted will be 1.325.
The price did not change much after the strong bullish signal appeared. We maintain the old strategy: do not maintain short positions but consider buying with the current market structure. Notice the current 0.725 zone. This is a very important area for both buying and selling sides.