May 24 2021 0
DXY did not make a new bottom in the last session, recovering from the 89.7 area. This price action is creating potential reversal patterns on several currency pairs.
- Concerns about "tapering" from the Fed have eased somewhat after rising after the release of the FOMC minutes.
- Initial jobless claims fell to 444,000 in the past week, a new post-pandemic low, and this is adding more evidence of a US labor market recovery.
- Crypto investors had another worry, Janet Yellen. Specifically, the US Treasury Department said on Thursday that all crypto transactions over $10,000 are subject to reporting requirements, corresponding to cash transactions.
- Ms. Yellen - Secretary of the Treasury has proposed reforming the US corporate tax with a proposed minimum global corporate income tax rate of 15%.
- Europe's economic recovery accelerated in May with the services sector recovering while the manufacturing sector was "cooling off".
The price has not changed much, still hovering around the uptrend line, and there is no sign of breaking down into the range. You continue to maintain your previous buy orders, set your target around the upper boundary of the range, and put the SL below the 108.5 area. If it breaks, suspend buying.
The price has not been able to break the 1.225 resistance area as expected, instead it has strongly retraced from this price area and is forming a double top pattern, the new session needs to focus on the 1.215 price area, if it is broken, trend followers suspend buying, reverse traders can consider short-term sell orders.
Selling pressure has reappeared around the 1.1423 price zone, with bearish signals appearing on both H4 and daily, it is likely that the price will continue to correct down to the 1.40 resistance area, but the reward level is not really good. Please consider if you want to trade.
After being forced to the bottom of 1.20, the price recovered again, creating a remarkable doji candle on the daily, in the short term continue to expect the price to recover, at least go to the 1.23 zone, you need to reverse if while the buy order can continue to hold and place the SL below the 1.20 zone, the bearish trend followers continue to observe, not trading at this time.
Price was unable to break above 0.78 zone, retracing again from this zone, it is reducing the possibility of price retesting 0.79 zone, and increasing the possibility of price breaking the ascending channel line. Pay attention to the 0.77 area, if it is broken, we will give up the buying strategy, because the price will likely retest the 0.76 zone.