Apr 14 2021 0
The US inflation data did not disappoint, both in terms of numbers and its impact on the market.
- US inflation data for March rose higher than expected.
- President James Bullard of FED St. Louis on Monday said vaccination of three-quarters of Americans would be a signal that the Covid-19 crisis is coming to an end, a necessary condition for the Fed to consider slashing its bond buying program.
- Just over a fifth of Americans are currently fully vaccinated, but worryingly the country reported an 8% increase in new Covid-19 infections last week, the fourth consecutive week of increase.
- Germany is expected to pass a new law that sets out national rules on restrictions designed to prevent Covid-19 infection.
- Oil prices have benefited from two factors. China's oil imports increased. Tensions in the Middle East increased when the Houthi movement said it had fired missiles at Saudi Arabia's oil sites.
The 110 zone held and the sellers were back strong around this price zone. Right now, big changes are taking place. The 109 price zone is showing signs of being broken down, and if it succeeds, it will be a confirmation of a new bearish structure. Then, new downtrend traders may sell in the short term, targeting prices around 108. Zone 108 is also the last stop of mid-term uptrend traders. If it is broken, the bullish structure will fail. Therefore, we need to pay special attention to this price zone in the coming sessions.
The accumulation price zone has been broken. Prices continue to go up as expected. Keep long buy orders and target the 1.20 zone. Selling pressure is likely to return around this round number price range.
Unable to recover strongly against USD like EUR, GBP is showing weakness. The current price is not different from the previous session. In general, there have been no significant changes. Keep holding the rest of the sell orders, narrow your Stop Loss and set your target around the uptrend line, around 1.360-65. Price action around this zone will reveal clues about the direction to go next.
Selling pressure signals appeared on both the H4 and the daily chart in the past session. However, the range has not been broken yet. Therefore, you need to be patient. During the new session, we need to look specifically at the lower boundary of the range. If the price breaks it, sell orders to the 1.24 zone could be considered.
Prices continued to recover in a moderate session, but in general, it has yet to bring about a breakthrough. It is still being compressed in the range. The short-term traders should continue waiting for the 0.767 zone being broken to buy up the 0.78 zone. Medium to long term traders should continue to hold the previous buy orders.