Jul 23 2021 0
USD rebounded strongly in the second half of yesterday session and recouped the losses of the day. This generates bullish signals. However, it should be noted that this signal was generated in a relatively narrow consolidation zone. We should not rush to trade according to this set of candlesticks.
- The ECB left interest rates unchanged, changing the direction of monetary policy, acknowledging that inflation may need to exceed 2% for a period of time.
- US weekly unemployment data was worse than expected.
- The dollar index, along with the yen, which rose at the start of the week to its highest level since April, is correcting lower as strong earnings reports have supported equities and pushed bond yields away. up, it also caused investors to withdraw from the shelters they had previously poured into.
- British Business Secretary Kwasi Kwarteng on Thursday said the European Union had lacked flexibility in renegotiating Northern Ireland in its Brexit divorce deal and warned Brussels that it was not a deal. will last forever.
- The US voiced support for Australia in the trade dispute with China.
USDJPY fluctuated narrowly in the past session, creating a consolidation area just above the 110 zone, this area is shaped like a triangle/pennant pattern, so it is necessary to watch out for the possibility that the price will continue to rally to the upside. However, the structure The bearish structure is still present so we still maintain the sell-side strategy, the possible ambush zone is around 110.7.
The price broke the trend line, but then the sellers quickly turned around and forced the price back to the 1.175 bottom area, creating a bearish signal. These price behaviors once again show that buying pressure remains very weak while bears remain in control. We are still ready to sell when the price breaks the box, in case the price recovers above 1.195-1.200, we can also sell when there is a signal (less likely).
GBPUSD has recovered quite strongly in the last session and is retesting the confluence around the upper border of the downtrend channel. There is still no noticeable bearish signal around this zone, the bullish momentum (observed on daily basis) is still quite good, therefore, we can't sell at this time, continue to wait patiently for bearish signals. price around 1.380 to sell in a downtrend.
After two consecutive sessions of strong decline, the last session is consolidating in a narrow range around 1.255, creating a daily swing pattern, but this is still not an ideal signal for us to return. with an uptrend. You continue to be patient, ambush around 1.245, only buy when there is a strong bullish signal.
The price has recovered as expected after the previous bullish signals, now it has approached the 0.740 price zone, however, there is no reliable signal yet so that we can return to the mainstream downtrend. Keep waiting, don't enter the order too early when there is no signal!