Feb 01 2021 0
The USD index is standing at an important price threshold. In the event that the price breaks the threshold, large moves are possible. Let's get ready to trade today.
- ECB continued to intervene verbally to cool down the rise of the euro.
- The PBOC has denied rumors that it is tightening financial terms. Specifically, the Central Bank of China stated that this was "completely untrue", which was the PBOC's immediate response as the Chinese market got a little frightened on Friday morning, with an overnight repo rate. increased to its highest level in nearly six years.
- Bitcoin surged 14 percent on Friday to its highest level in two weeks after Tesla Inc CEO Elon Musk mentioned the digital currency on his Twitter.
Price rebounded as expected and approached the target area of 105 after breaking the threshold. I hope you have made it in time. We should continue trading in the direction of the newly formed uptrend. However, the price might correct from the 105 zone before continuing to move up. You should watch around the 104.4 conversion zone when there is a signal.
The price continues to move sideways in the range from 1.200 - 1.220 without a breakout. Today, we are not in a hurry to trade but continue to observe and wait for signals of breaking the threshold before entering the order. If you have entered a sell order following the flag pattern last week, you can still keep the order. Place SL on top of pattern.
There are no notable new signals on the GBP/USD chart. The price is still limited in a sideways range from 1.363 - 1.375. Again you need to be careful with a strong price move after times of accumulation long and narrow. During the new session, we need to observe more of the uptrend line below. If the price breaks this trendline it could be an early signal that the current range will be broken.
The price bounced around 1.28 but could not get past the long-term downtrend line, which is exactly what the bulls are concerned about. Selling pressure is quite clear. In the short term, the price could continue in this direction and retest the 1.27 zone. This is the price zone where we need to watch out for new signals. In addition, if the price successfully breaks down of the long-term downtrend line and crosses the top of 1.287, one could also consider buying.
The price did not penetrate the round number 0.77 and fell as expected. Continue to hold short orders and move the stop loss to close to this price area. In case the price is supported by 0.76, an additional short position may be considered. At that time, the bullish pin bar pattern on the daily chart will also be disabled.