Feb 23 2021 0
Here is our chart analysis for today, February 23. But first, some latest updates of the financial world:
- The overall tone for the dollar remains negative as the focus remains on the global economic recovery from the Covid-19 pandemic.
- The $1.9 trillion fiscal stimulus bill could be put in the lower house to vote on Friday, meaning the Senate will consider it next week.
- EU Economy Minister Paolo Gentiloni said the target to vaccinate 70% of the adult population in the summer is ambitious but achievable, he also commented on some of the economic stimulus measures that the withdrawal Again, measures to support the economy too soon will be more dangerous than delaying.
- The plan to reopen the UK economy is said to include four separate stages of easing of restrictions, with a deadline of several weeks between each, according to The Guardian.
Prices continued to decline after a slight rebound at the beginning of the day. This price movement is still not out of our expectation. Currently, the price target of the sellers around the lower border of the upside channel has been approached, so consider exit. From 105 to 104.5 is the area where buyers ambush back to the uptrend. However, we still need a clear signal before placing an order.
The price has shown signs of breaking the downside channel line and is approaching the top of 1.217. Again, this is an important price that plays a role in shaping the trend. More specifically, if it breaks, the bullish structure will be confirmed and the bulls might consider buying back orders. Conversely, if the price fails to cross and produces bearish signals around this zone, a short-term sideways price zone is likely to form.
Prices adjusted to decrease slightly in the beginning of Monday session, but then erroneously rose again and negated the bearish signals on the previously generated daily chart. However, as warned in previous sessions, the target range for short-term buyers is not much. The chance of re-corrections is very high, so you shouldn't ‘long’ now. For short-term reversal traders, you also need to provide reliable signals before entering a position.
The price has recovered slightly from the 1.26 bottom as expected, but the buying power around this zone is too weak to push the price any further, increasing the possibility of it being broken in the coming days. We keep the old strategy: Wait for the opportunity to return to sell orders when the price successfully penetrates this bottom area. Don't enter too early to avoid the bear trap.
There was not a strong pullback as expected. The round number 0.79 price zone has been penetrated relatively easily. Trend traders may now consider buy orders in the psychological resistance zone of 0.80. However, the stop loss order should be placed right below the new pin bar candlestick formed on the H4 chart in case of an unexpected correction.