FOREX CHART ANALYSIS SEP 9 - SHORT POSITIONS
There are a lot of surprising signals on the charts today. Let's focus on them to see what we should do today.
- President Donald Trump has taken a new stance against China, promising to "separate" the US economy from China if he is re-elected in November.
- The GBP fell sharply on Tuesday with key rivals after the market realized that the UK government had soon brought the prospect of a "hard" Brexit back on the agenda. Earlier this week, Prime Minister Johnson signaled that he did not want to abide by the Departure Agreement his government had signed. That agreement is the basis for a transition period that runs from the end of January 2020 to the end of the year.
- Crude oil prices fell to their lowest level in 10 weeks at the end of the high season in the US, causing the market to focus on the supply / demand balance worsening.
- The top nine US and EU vaccine developers pledged on Tuesday that they would maintain scientific standards in the vaccine development process. This announcement was broadcast in the midst of a global race to find a solution to a pandemic.
Finally USDJPY also fell as expected. Short-term support levels have been broken, accompanied by a notable bearish engulfing pattern on the H4 chart. Today, you can consider adding short positions and moving Stop Loss of old positions. The initial target will be the bottom around 105.
Prices continued to decline yesterday. Although not too drastic, it is enough to disable the previous two pin bar candles. The uptrend line also started to be violated. This continues to be a good sign for the sellers. However, only short positions should be kept. Should not add further because the important support zone 1.17 has not been broken yet. Please be patient.
After the signal mentioned yesterday including breaking the up channel line and invalidating the newly formed pin bar pattern, GBPUSD had a spectacular fall, straight to the set target of 1.30. You should consider closing short positions because the price has entered the oversold zone so an upside correction is likely to occur. Opportunities to return to sell orders may appear around the MA20.
The price bounced back sharply as concerned, broke through the 1,315 zone, approached the 1.325 area mentioned, and stopped out of previous probe orders. This is an important transition zone. The bearish signal has also appeared, but we should not trade at the current price range. In the short term, you should consider long positions around 1.315 with signals including a broken downtrend and a head and shoulders reversal pattern.
There has been a big change to AUDUSD and we are also changing our strategy. Currently, the newly formed important pin bar pattern has been invalidated, accompanied by a clear break of the uptrend line. You should consider short positions from here. The initial target for these short positions is around 1.713.