Apr 05 2021 0
In the first session of the week, many countries continue the Easter holiday, liquidity may continue to be thin and fluctuate at low level. However, economic data in the US session is still released as usual, so there will be trading opportunities for us.
- The March US NFP report exceeded expectations (916k vs. 652k). This reflects the strong recovery of the US economy and the cause of the dollar's increasing price.
- Sentiment on the dollar has improved in recent weeks, while Treasury yields have spiked due to the Biden administration's new over $ 2 trillion stimulus plan combined with the rapid declaration of COVID-19 vaccine as well as rising inflation concerns.
Not many changes were made in the previous session. The current price is still accumulating close to the 111 area with the bullish flag pattern. These price actions are showing the buy side's control, so it's still advisable to follow this side in the short term. Specifically, if the price completes the pattern and breaks the top of 111, we can consider buying orders to move up to 112. If the pattern fails and the price pulls back, wait for a buying opportunity around 109.5-110.
The correction is weakening ahead of the 1.18 zone, where we expect to see more sell orders. However, the new signals are not really convincing. Please wait patiently. For existing sell orders, you can continue to hold. The price is still in the down channel and there have not been any worrying reversal signals, so we don't need to worry too much before the current correction.
Price has made a bearish signal around the current 1.385 area, but this signal is relatively weak. It is not excluded that the price will continue to move up to the zone of 1.19 before creating a more noticeable signal. Therefore, you should only enter sell orders with exploration volume. Wait for the sellers to return more clearly into standard volume. In case the resistance level of 1.19 is broken, we will temporarily abandon selling strategy in the short term.
What we were waiting for did not happen. The previous session low around 1,355 has not been broken, so sell pending orders have not yet been triggered. Price is still stuck around 1.26 so we just watch for now. Keep the old strategy: wait to sell when the price breaks down to 1,355. Set a short-term target around the 1.24 zone.
Not much has changed in the last session. The current focus is still on the bullish signal on the daily frame, around the lower boundary of the long-term uptrend channel. For medium and long term traders, this bullish pin bar candle set is a good buy trigger signal. We can consider entering an order. For short-term reversal traders, they can also use this signal to buy. However, we should not set the target above 0.77 as a correction is likely here.