May 12 2021 0
The latest session was quieter than we expected. But it still give us clues about what to come.
Latest updates:
- The dollar's recovery is limited by the strength of commodity currencies thanks to the rise in oil and base metals prices.
- European stocks retreated from their all-time highs on Tuesday, with travel, retail, and technology stocks among the strongest losers on growing inflation worries.
- Policy-maker Francois Villeroy de Galhau of the ECB said comments that the European Central Bank (ECB) may begin to reduce early bond purchases (or tapering) "is purely guess".
USD/JPY
Prices continue to decline slightly and re-test the confluence area of 108.5, the buying power has also reappeared, you might consider buying up orders, setting the initial target at around 109.5.
EUR/USD
The price continues to fail to create new highs, the uptrend structure is still guaranteed, but the rounding top pattern is forming around the 1.215 zone, so the possibility of a correction is increasing. Still the old strategy: wait to buy when prices re-test the confluence area 1.21.
GBP/USD
The price has not changed much, the uptrend has slowed down around the upper boundary of the uptrend channel, still the old strategy, you should consider taking profit on previous buy orders, or moving SL to reduce risk. The next target is the year's peak, around 1.425. In case the price retraces to 1.405, an additional buy order may be considered if a bullish signal appears.
USD/CAD
Despite being in oversold market conditions, prices continue to consolidate around the 1.210-15 bottom zone, which increases the likelihood of prices continuing to fall. However, it should be noted that the drop to the next support zone is not much longer, plus the possibility of sudden corrections, so it is quite risky to choose to sell down at this time. Instead, you should wait for a sell opportunity above when the price ends the corrections.
AUD/USD
Price did not change much from the previous session, the correction from the resistance at 0.79 continued. We continue to wait for the price to pull back to the 0.775 zone, waiting for a buying opportunity in this zone, and avoid buying around 0.78.
