Good Morning All friends--
EURJPY BUY ANALYSIS
Today, I observe a different market view when the euro is very weaker against all currencies especially the pound and dollar but against the Japanese yen, he made a bullish engulfing pattern with the signal line of the ascending channel in the hourly time frame. As the price now very strong along with day channel signal support so here we can take some risk which will make us happy. Perhaps, I mention here that buy trader will be profitable as risk here is lower and reward here is bigger because our trade stop loss will be only 20 pips and reward will be channel resistance around 27 plus.
However, if the price comes down following domestic reason then here downtrend will be started for the level of 125.8 which mark as the horizontal line below the current market as well as below the signal line.
Gold markets fell slightly during the last week's trades and tested the important level of 1818 for support. We found the support there actually, so this was a good indicator. That's the reason for four more days gold price is in a narrow range. His exact place below 200 simple moving average and above down-channel. In fact, the daily candle looks like a bearish and suggests that we can move down from here, perhaps a complete h4 candle will give us more accurate strength of the seller and due to the reason of the USA political situation could bring the market more downside.
Fundamental reason :
Joe Biden going to expose a bigger budget to help the coronavirus affected people as well as rebuild the US economy as we get that T-yields spike as Biden set to announce $2 trillion stimuli on Friday by CNN Report.
On the other hand, if we have breakthrough with the 200 MA, we're probably heading toward level 1900. And the inability to be fixed above the level that will give us more positive scenarios for gold.
Again good news for the buyer of the USDx because the price highly tackled all selling pressure again heading up with the help of the support 90.13.
Technically and Fundamentally the position of the US dollar is great, so I and you all would be interested to be a passenger of the bull's train. We know that one day ago the price left from the ascending channel to collect some power to continue his uptrend bios. I draw a trend line that can press negative pressure. On the other hand, if anyhow the price has a breakthrough that indicates this price will be growing up toward day resistance 91. Meanwhile, the price has overcomes the resistance of 90.40 which gives good power to surpass the downtrend line and establish on the uptrend for a long time.
Anyway, when will we realize the price now on the bearish track? Yes guys this will be easy; when the price will settle down below the level of 89.91 for a decline toward 88.