Feb 22 2021 0
Hello everyone, just got back from a long vacation. Today we will focus on the most common currency pairs because the events over the weekends really brought some special changes to the charts today.
- As many as 861k unemployment claims were filed last week, the highest level in four weeks, higher than the 765k expected and 848k the previous week, which reduces optimism about the possibility of recovery. the US economy.
- GBP continues to maintain its dominance, still trading near a nearly three-year high, supported by a perception that Britain's aggressive immunization program will lead the country out of a quick standoff. than in neighboring countries.
- Oil prices fell more than 1% in the final session of the week, following the previous drop due to fears that US refineries will take time to operate again after a major freeze in the south of the country.
The price is still going on a downward correction to the lower boundary of the rising channel as expected. Continue to keep existing sell orders but move the SL or consider partial exit to preserve profits. The target of the sellers will be the lower boundary of the channel and the bulls can also return to the market on the clear signal. In general, price action around 105 will determine our next reaction.
The price has continued to move up and re-testing the confluence zone of 1,215 around the upper border of the descending channel. This is a particularly important price zone so we temporarily stop our action and pay close attention to this price zone. If it breaks, it will be a confirmation of a bullish structure (with the descending channel line broken and a gradual high-low structure), at which point the bulls might consider returning. Conversely, if this resistance is maintained, it is likely that the price will create a sideways range afterwards.
The bearish signal started to appear on the daily chart. Although it was just invalidated by buying pressure at the beginning of the week, as warned from many previous sessions, the target range for the bulls is not much. The market is in overbought condition and approaching with polar regions. A correction is very likely. This condition is more suitable for short-term reversal traders. However, it is necessary to wait patiently for reliable signals.
Price has approached target zone 1.26. Consider exiting previous sell orders to take profit. The downward momentum is quite good but this is the lowest price area in the past few years, so it is not excluded that there will be a strong adjustment. We should only continue sell orders when there is a reliable breakout signal.
The price suddenly increased sharply and broke the peak of 0.7818, the highest price since April 2018. This price action confirmed the return of the bullish structure. Consider buy orders. However, as the price has approached the 0.79 zone, we should wait for a correction before buying.