Apr 26 2021 0
At the beginning of the week, there were not many notable price gaps.
- The BoE said it sees the possibility of the economy growing "very quickly" over the next few quarters.
- The US will urge allies to increase pressure on China on Xinjiang at the June G7 meeting.
- USD ended the week at the weakest level compared to major currencies.
- The EU is accelerating in the vaccination race, with the comment from the President of the European Commission, Ursula von der Leyen as follows:
- They have more than 123 million vaccinations in the EU.
- The EU will have enough vaccine for 70% of the adult population by July.
- They are working with Pfizer on a new vaccine contract.
There has been a clear breakdown of the 108 price zone. However, the buying pressure quickly returned and pushed the price up again to the important confluence zone 108. This price action created a very remarkable spining top pattern on the daily chart. With this indecisive breakout move, the possibility of price returning to the upside is becoming clearer. In the new session, we will observe the two boundaries of this spinning top pattern. If it breaks above, buy orders could be considered again.
Sell orders were not triggered as the price failed to break the 1.20 zone to complete a reversal pattern. Instead it was a strong bounce, penetrating the old top at 1.208. This price action invalidated the previous bearish patterns. However, we do not encourage brothers to buy because the market is in overbought state. The price has approached the upper boundary of the descending channel, and the increase (potential) amplitude is very small. For reversal traders, pay close attention to price action around the 1.210-15 zone.
The price bounced back from the 1,380 zone. Let's continue with the old strategy: keep buy orders and place the SL below the 1.380-85 zone.
Price fluctuated very low in the last session of the week and did not make any significant changes. Overall, the price remains stuck in the 1.250-1.265 range although the possibility of a breakout is increasing. We should not trade until this zone is broken.
The price did not break the 0.77 zone, so the head and shoulders reversal pattern we are observing is not yet confirmed. Short-term traders continue to suspend trading. Watch for the 0.77 and 0.78 zones. The breakout of these prices will reveal the direction to go next. For mid- to long-term buy orders, you can still keep your position.