FOREX CHARTS ANALYSIS JAN 21 - 5 MOST COMMON PAIRS
The US market closed the first trading session of the week so the price was quite weak. Remarkable price movements appeared at the beginning of the session today. Let's have an update on the daliy charts of the most common pairs to see what trading strategies we should choose.
- Platinum prices rose to an all-time high at the beginning of the week, reaching the $ 2,548 mark. Although most of the fundamentals continue to show a potential for price increases due to both demand and supply. However, investors need to be very careful now as the speed and range of gains is surprising to even the most seasoned market watchers. Some people warn that prices may have gone too high, too quickly.
- Moody's has given its opinion on the UK economy in 2020. Accordingly, they forecast it to grow at only 1% accompanied by some difficulties related to Brexit.
- Bundesbank made optimistic comments about the German economy in its latest report.
EUR/USD continued to decline in the first session of the week but there was a noticeable signal: a bullish pin bar appeared on the daily chart. As mentioned, this is the last block of the buying side so people can still consider long. The reward level is pretty good. Note the lower boundary of the short term down channel. If there is a Stop Loss scan, this is the goal. Everyone should set a reasonable Stop Loss.
There was a certain reaction when the price dropped to the level of 1.295. However, as expected, we now have noticeable reduction signals including: the gap has been filled, the price has finished retesting the broken channel line with the submerged candlestick pattern on the daily chart and the pin bar dropping on H4. Therefore, we still keep our bearish forecast for GBP/USD.
USD/CAD is still moving in a narrow accumulation area so there is nothing to say. Keep the old view, waiting for a breakout signal. In case the breakout price is up, buying orders can be considered.
AUD/USD sellers still seem to dominate in the short term. The bearish bars appear more and more stronger. Therefore, we will not buy in the current price range, but wait for the signal to increase at the confluence of 0.682 to follow the medium-term uptrend on the daily chart.
After the bearish signal on daily and H4 yesterday, the first session of the week has not run. However, this morning, there have been remarkable developments. USD/JPY is falling relatively strong. The MA20 has been broken. If you close the bar without a long shadow below, then people may consider short orders.