Apr 15 2021 0
What a day! Tension can be seen everywhere in the world. The EU is struggling to come up with a big stimulus plan. Inflation data from Japan and America. It’s time to trade as the market is getting more and more volatile. You can learn how exactly in the article below.
Latest updates:
- The dollar continued to weaken on Wednesday, being pushed to a three-week low as bond yields fell after US inflation rose in March was not enough to change the Fed's mindset.
- The European Commission plans to borrow around 150 billion euros a year until 2026 to fund the bloc's unprecedented stimulus plan to digitize the economy and make it greener. This makes them the biggest debt issuer in euros.
- ECB policy-making member De Guindos said the risk of early withdrawal of stimulus is higher than for keeping the policies intact.
- Governor of the Central Bank of Japan - Mr. Kuroda said that BoJ will continue to persevere with strong easing measures towards the 2% inflation target.
- US President Joe Biden proposed a summit with Russian President Vladimir Putin to settle a series of disputes, trying to reduce tensions after Russia increased its military on the Ukrainian border.
USD/JPY
Although the price has not decreased as much as expected, the accumulation in a narrow range around 109 shows that the buying pressure is very weak. There is a high chance that the price will drop. We can consider short-term sell orders to the 108 zone. Note 108 is a particularly important price zone, as this is the last stop for buyers to follow the mid-term uptrend. If it breaks, that bullish structure will be breached, thus price action around this zone will reveal the direction of the price's upcoming move.
EUR/USD
Price has hit the target area of buy orders. We expect selling pressure will return to around this 1.20 zone, therefore you should consider a partial or full exit from the current buy order. This price zone is very prone to false breaks. In the case of a pullback to the 1.90 zone, we can wait for bullish signals and continue to buy.
GBP/USD
GBP/USD has had the 3rd consecutive gaining session. However, we can see that buying force is quite timid. The long upper wicks of recent candlesticks show the instability of the recovery, so selling pressure can be expected to return around the confluence zone 1.380-85. Currently, a bearish signal appeared on the Daily and H4 chart, but it was still quite weak. We should expect another slight uptrend before considering short-term sell orders.
USD/CAD
Price continues to generate new bearish signals. Selling pressure is seen quite clearly on both the daily and the H4 chart. What is still missing, however, is the range-breaking signal. Therefore, you should continue to wait patiently. Enter your order when the price breaks down to the 1.250 zone. The target then would be 1.235-40.
AUD/USD
The price has broken the downtrend line and completed an inverse head and shoulder reversal pattern as expected. Short-term buy orders also activated, targeting the 0.78 zone. For medium to long positions, hold on. We could consider moving Stop Loss to close to 0.76.
