Apr 09 2021 0
Here is how you should trade the market on the last day of the week.
- Mary Daly - San Francisco Fed Chairman, said she was optimistic about the prospects of economic recovery.
- USD is losing a factor supported by bond yields continue to decline after the minutes of the FOMC meeting failed to provide any new "catalyst" for the market.
- European stocks hit a record high on Thursday as optimism increased around the global stimulus fueling a rebound, especially after the Fed signaled it was not in a hurry to tighten. its monetary policy.
- European Central Bank (ECB) President Christine Lagarde said the coronavirus pandemic will affect euro zone growth in the coming months but the long-term risks are diminishing and the growth rate will increase as Blockade measures have been removed.
The Spinning Top pattern was invalid yesterday. The price continues its pullback, penetrating 109.3 and approaching 109. The up structure still exists so we can still expect a return of the uptrend. However, we need to have confirmation signals before trading, which is not available on the daily and the H4 chart. In the new session, we must continue to wait patiently.
Obviously we took profit a bit early. After the simultaneous bearish signals on the daily and the H4 chart, the price did not drop as expected but continued to go up, not giving us the opportunity to enter new buy orders at a better price. With these new price actions, the strength of the bulls is confirmed. We could return to buy orders to the 1.20 zone. Place Stop Loss below the zone 1.19.
Prices did not change much yesterday. However, with the high-performance currencies all bullish before the USD while the GBP hasn't seen much change, this is a positive signal for the sellers. We keep our sell strategy on GBP/USD. Target price around 1.360-65. Consider narrowing down the Stop Loss to reduce your risk.
Tensions continued on the USD/CAD chart. The price is pulling back from the 1.265 zone and continuing the narrow range. We still keep the old forex trading strategies. Consider trading only when this range is completely broken.
The price does not fall towards the uptrend line as expected, so short-term traders cannot enter new orders. The mid-long-term traders still have profitable buy orders, so keep holding. During the new session, pay attention to watch the 0.77 zone. Only consider buying when this zone is broken, because then the short-term bearish structure is broken, the channel line is broken and a reversal pattern is confirmed.