May 21 2021 0
The rally on USD has ended. DXY has dropped again and lost the 90 level. If it continues to break down to 89.6, in the short term, the price may drop to 89.2 - the lowest level of the year.
- US unemployment data was slightly better than expected (444k vs 450k).
- The bullish momentum from the FOMC minutes in the USD ended, the USD fell back to multi-month lows.
- The crypto market is recovering and stabilizing after the plunge, but still a long way from the peak.
- The slide in the prices of cryptocurrencies forced some investors to close leveraged positions, a move that exacerbated the decline.
- Crude oil prices fell sharply as Iranian President Hasan Rouhani announced that a key framework agreement had been reached on reinstating the 2015 United Nations-backed deal to limit the country's nuclear program.
After a false breakout around the uptrend line, the price fell back down again, this action caused some early buy orders to get stuck, but you can still expect the price to go up as long as the structure is not broken. break. SL can be placed below the 108.5 zone, if the price penetrates this support, temporarily stop buying. In the new session, pay attention to observe the two boundaries of the range.
After the correction, the price retested the 1.2235 price zone once again, but a clear bullish signal did not appear around the 1.215 area, so maybe those who did not have a buy order before still missed the opportunity to enter orders. In the new session, we will focus on this area of 1.2235, if successful, the next target will be 1.230-35. You continue to move the SL of the previous buy orders to preserve profits.
It's a pity that our buy orders exited early as the price has bounced back, retesting the 1.422 peak. Anyway, you missed it, you should avoid chasing the price at this time, but if you still have a buy order, you can still hold it. Pay close attention to the price action around 1.423, it will reveal the next direction of the price.
The previous recovery levels were all taken away as the price fell sharply in the last session, around our previous EP point. However, as long as the 1.20 bottom has not been broken, we can still expect the price to continue correcting up. You can trade in a reversal and buy orders can continue to hold, setting an initial target around 1.22, trend followers avoid entering the market at this time.
Fortunately for the buyers when the 0.77 price zone is held once again, that means we don't need to give up the buying strategy yet, but we need to closely observe the next price action around the 0.78 zone, it needs to be broken to consolidate. try to increase the expectation of retesting the 0.79 area.