Apr 29 2021 0
Notable events today include: FOMC meeting report, tax hike plan from Joe Biden, new China policy on cryptocurrencies and an interesting forecast from Goldman Sachs. All of them will contribute a lot to how we should trade in the market today, April 29.
- China's approach to the cryptocurrency issue won't work in the US, Mr. Powell commented.
- FOMC meeting is over and there is no change in interest rate, QE, however the economy outlook slightly improves.
- The market is still waiting for clearer information about Mr. Biden's tax increase plan.
- RBNZ implies that it will keep loose monetary policy in the near future. Overall, the RBNZ is still in a "wait and see" situation with little incentive for change.
- Goldman Sachs said that commodity prices are likely to increase sharply in the next 6 months.
The price corrected to the downside after a sharp bounce from the previous long-term uptrend line. This price action created a noticeable bearish pattern on both the H4 and daily chart, threatening our buying strategy. However, it also provides a better entry point. You can still consider buying when the price is above the 108 support, initially targeting the 109.5 zone.
The bulls continued to dominate and the price broke the downtrend line, approaching the resistance zone of 1.215. However, the amplitude to the next resistance levels is not much longer and the market is in overbought state. The price is about to approach the upper boundary of the descending channel, so we do not encourage you to buy. Instead, we should wait for reversal signals to return to the mid-term bearish channel.
The price is heading to the 1.40 zone. Continue to move the SL for the previous buy orders and consider partial or full exit when the price approaches the 1.40 zone. Buying above this zone should only be considered when the price breaks the 1.40 zone with significant momentum.
The price suddenly fell sharply and broke through the target price area of 1.235. Sell orders have been closed. With this price action, the likelihood of the price approaching the 1.225 support is quite high. However, the amplitude is not much. We should not continue to sell now. Adjustments may appear around this area.
The price quickly returned to retest the 0.78 resistance zone after being rejected earlier. Pay attention to this important price zone. If it breaks, we could consider buying up to the 0.79 zone. Medium to long term traders continue to hold on to existing buy orders.