May 28 2020 0
There are considerable interesting movements on today’s charts. Let’s check them out so that you can find a proper forex trading strategy.
- The dollar reached its highest level against the yuan in 9 months as events threatened to escalate political conflicts between the United States and China. The renminbi fell to a low of 7,173 in overseas markets, which are less tightly controlled by Beijing.
- The US House of Representatives plans to vote on a bill to punish Chinese officials on Wednesday (US time).
- The European Commission made its proposals to the European Recovery Fund worth 750 billion euros ($ 825 billion), greatly expanding the EU's borrowing capacity.
Yesterday continued to be an annoying lull on the USD/JPY chart. Both important price areas have not been violated. I repeat two possibilities:
- If the price breaks out of 108, the momentum is strengthened and the price can return to 109.
- If the price breaks 107.3, the bullish structure is violated. The price could then move sideways and retest the lows.
Therefore, this is not the time for action yet. Anyone who still has a long position can hold the command and wait for the next signals.
After about 2 months in the wide range, EUR/USD had a breakout signal. The zone 1.10 has not been completely broken, especially on the daily frame, so we should only buy in small quantities for exploration. Add only when this boundary area is clearly demolished. The target is zone 1.115.
The price action on the GBP/USD chart is really upsetting for traders. After breaking the nearest peak, the price has retreated quite strongly to the sensitive price of 1.220. Temporarily we do not see the clarity so do not trade at this time. Pay attention to the zone of 1.220. This is the bottleneck of the buying side. If it is offended, we will reconsider selling options.
Not much has changed since the previous breakout. The sellers are still showing strength on the USD/CAD chart. You may continue to maintain long positions. The immediate target is still the zone of 1.36. Further goal could be the gap in early March.
As a warning to the buyers, the price has retreated sharply to the MA20 after checking the top of 0.668. Currently, the buy signal appearing on the H4 chart is not impressive. Besides, the hanging man model is threatening the rise on the daily chart. Therefore, buy orders should only be considered when the price breaks the peak of 0.668. Do not enter the order too soon. Conversely, if the zone 0.6567 falls, the price could easily go back to zone 0.640.