Jul 20 2021 0
USD has made a new high for many months. However, the breakout at the beginning of this week is facing selling pressure around the round number 93.0. Keep an eye on the price action on DXY!
- The dollar edged higher on Monday, maintaining recent strength as a resurgence of the disease threatening the global economic recovery was derailed, boosting safe-haven demand.
- GBP dropped sharply in the first session of the week after the UK recorded a high number of infections and a BoE member said that stimulus should not be reduced in the near future.
- U.S. crude oil prices fell back below $70 a barrel for the first time in more than a month, a day after Saudi Arabia and the United Arab Emirates resolved differences over output policy and paving the way for a series of gradual production increases by OPEC and its allies.
The price dropped quite strongly in the last session, the support area of 109.5 was also broken, confirming the continuation of the newly formed bearish structure. However, the main disadvantage is a new bullish pin bar pattern appearing on H4, which increases the possibility of a short-term recovery. You can consider taking profits on existing sell orders or continue to move SL to reduce risk. Do not rush to add new sell orders, wait for the next signal, avoid getting caught in a bear trap.
EURUSD has increased the volatility at the beginning of the week, but the price has not been able to get out of the box, we continue to wait for a breakout signal to add sell orders in the downtrend, the initial target is 1.170, then next. is 1.160. In case the price breaks out of the box to the top, we will be selling around the 1.195-1.200 zone.
The price broke the box, got out of the accumulation zone, continued the downtrend. Pending sell orders have been matched and are in positive status, you may consider moving SL to reduce risk. Initial target is 1.360, can consider taking profit around this price zone.
The 1.270 confluence was broken quite easily, the buy orders were taken profit. Although the upward momentum is quite good, but the market is in an overbought state, the price rejection signal has also appeared, you should consider not chasing the price at this time, the possibility of a retracement is quite high.
After getting out of the box, the price is continuing to fall as expected. The initial target around 0.73 is about to be approached. At this price zone, you might consider exiting part of the order and keeping the rest for a new target, around 0.72.