Apr 02 2021 0
The USD index corrected for the last session, but was still trading around the 93 mark. At the end of the week, western markets were on holiday, while in the evening there was still NFP data being released. Pay attention to possible fluctuations in price due to low liquidity.
- U.S. President Joe Biden announced his long-awaited $2 trillion infrastructure rebuild on Wednesday, which will be a new pump of money into the economy following the bailout. A $1.9 trillion grant was recently approved.
- Retail sales of the leading economy in the EU - Germany - decreased by 9% compared to the same period last year.
- The rise in inflation in the eurozone is due to temporary factors, the underlying trend remains weak, so the ECB needs to maintain support for the economy, said ECB chief economist Philip Lane.
- China has released a disappointing Caixin manufacturing PMI, at 50.6 for March.
Concerns about a strong and unexpected correction eased as the price was still consolidating close to the resistance zone 111 without much change, despite the significant drop in USD. This suggests that the upside potential remains, as evidenced by the pennant pattern forming on the H4 chart. If there are still buy orders left, we can drag the Stop Loss and hold the position. We need to observe this pattern closely. If it completes and the price breaks above 111, buy orders could be considered and the target is 112. On the contrary, if the pattern fails, the price could correct back around the lower boundary of the up channel and We will look for buying opportunities around this zone.
Price failed to break the support zone 1.17 as expected. Therefore, the additional sell orders have not been activated yet. The price is now moving to the 1.18 zone, but we don't need to worry too much when it is still in the downtrend channel. Pay close attention to this 1.18 confluence area. If a reliable bearish signal appears, sell orders can be added.
The price continues to adjust and has approached the sensitive area, the area of 1.385-90. This is the price range in which we decide whether to hold or cancel the current short-term sell strategy. Not excluding the possibility that the price could break the channel and then retest the previous uptrend line. We can still wait to sell in this zone but need a clear trigger signal.
After bearish engulfing signal, price continued to show selling pressure with the long upper shadow in the last session. The possibility of returning to the downward channel is increasing. Pay close attention to the current 1.355 price zone. If it breaks, consider short term sell orders to the 1.24 zone.
The price has turned up quite sharply after approaching the uptrend line, and is currently heading towards the upper boundary of the short-term down channel. For medium and long term traders, the new bullish pin bar candlestick set on the daily chart is a good buy trigger signal. You may consider entering an order. Short-term reversal traders can also take advantage of this signal to buy up. However, we should not set the target above 0.77 as a correction is likely here.