Jul 15 2021 0
Expectations of the Fed tightening monetary policy soon due to high inflation were rejected again by Mr. Powell. The USD failed to continue the upward momentum and retreated from the key 92.74 price level. Check out how we should trade accordingly now.
- Mr. Powell denied inflation worries, saying that it is still a long way from the moment of policy change, the USD reacts negatively.
- New Zealand's central bank announced an end to bond purchases, paving the way for a rate hike later in the year.
- GBP has strengthened after UK inflation figures for June, surprise with the increase.
- The Bank of Canada maintains its current interest rate and policy direction, adjusting its quantitative easing program.
The wedge pattern has completed, on the daily has also formed a very noticeable bearish engulfing pattern, now sell orders have been activated and are positive, continue to hold orders. The initial target for these sell orders is around the old low of 109.5, in case the price successfully breaks this support area, the next target will be around 108.5.
The price could not break the support around 1.180 but recovered again, continuing to accumulate, so new sell orders have not been added. Bears are still in control of the market, we keep the old tactic, can maintain sell orders if there are any, and only add new orders when the bottom of 1.180 is broken, then the target will be around 1.170.
There are not many new points on GBPUSD, the price is still hovering in the middle of the range with a range of 1.375-1.390, avoid trading for now and pay attention to the price action at the two edges of this range.
The last bullish signal appeared around the 1.240 area with the rail pattern on H4 and the pin bar on the daily. Buy orders can be considered, but it should be noted that the RR ratio is not really good, the target for this rally will be around 1.270, but before that there may be selling again. around the 200-day MA at 1.263, keep an eye on this risk.
AUDUSD did not make a breakthrough in the last session, the price is still stuck in the range areas and there is no clear signal, we continue to observe and wait for new signals, avoid trading for now.