Apr 22 2021 0
USD was unable to maintain its rebound and turned back down at the end of last session. That means it's time for us to trade.
- Despite keeping the standard rate unchanged, BoC adjusted its asset purchases, causing CAD to bounce back sharply after the meeting.
- ING believes that the Fed is making the real US interest rates fall deeper, and this may make the USD less attractive.
- Zhou Xiaochuan, former governor of China's central bank, said at the BOAO Forum on Wednesday that China should not be in a hurry to use the digital yuan for cross-border payments due to regulatory obstacles and concerns. of foreign countries on its global impact.
- The Bank of England can strengthen controls over cloud data providers and other technology companies to deal with possible risks to the stability of the financial system from the rise of fintech.
The price has had a second consecutive struggling session around the sensitive price range 108. In the last session, the spining top pattern appeared on the daily chart. With these signals, we should suspend sell orders and take profit for the rest of the orders. Pay close attention to the two boundaries of this pattern. It can hint at the next direction of price. In addition, we do not rule out the possibility of a false-break around this zone. Breakout traders targeting the uptrend line should be cautious.
Following a gravestone doji, sellers were unable to sustain downward selling pressure, ending the session with a dragonfly doji, which increases the likelihood of a further upward move. . With the price responding quite accurately to the confluence zone 1.20, you might consider short-term buy orders. Put SL below 1.20. However, it should be noted that the amplitude to 1.210-215 is not much. This is a potential ambush zone for the sellers. You should consider carefully before making a decision.
Price has re-tested the neckline of the double bottom pattern and created a bullish candlestick pattern. With that said, this is an opportunity for us to replenish buy orders at a good price. SL is located below the area of 1.385. We expect the price to keep going up and break the 1.40 zone.
Although there was a very strong "dump" in the last session, it is not enough for us to change our view of not trading USDCAD at this time, because the price has not yet escaped the narrow range. Although the probability for a further decline has increased, one should continue to patiently observe and wait for a new signal.
There have been no big changes on AUDUSD in the last session. We keep maintaining our previous view: selling pressure is present. Short term traders should pause their buy strategy. Medium to long term traders continue to hold buy orders and move SL to breakeven point. Pay attention to the possibility of forming a giant head and shoulders pattern on the daily chart.