Feb 24 2021 0
Price volatility from the Fed Chairman's semi-annual hearing last night was not as strong as it was concerned, but it still brings notable changes.
- GBP is in a good position to increase in value. Yohay Elam, Analyst at FXStreet commented: “While investors prefer a faster than normal economic opening, the UK government's 4-month conservative exit plan has been well received by the market seems convinced that the current blockade is final. Furthermore, the program received broad support from the public, the opposition, the medical community - and also from the Ministry of Finance. ”
- According to Bloomberg Economics the ECB no longer appears to have relied on its decentralization system to reduce costs for banks with excess reserves and more reliance on the interest rates of targeted refinancing operations. your long term. This change will significantly reduce bank returns from negative deposit rates and eliminate the need for ladder multiplier adjustments.
- ECB President Christine Lagarde said it was "closely monitoring" the government bond market, implying that the central bank could act to stop an increase in yields.
- New Zealand's recent economic data is very good and inflationary pressures have been on the rise in previous data releases. Moreover, the negative interest rate outlook has been pushed back as the current monetary policy is deemed to be doing well. So the general outlook for the NZD is that it will get stronger.
Price bounced up from the 105 zone, reacting quite correctly to the rising channel line. However, the bullish signal is not really clear, and this can cause many people to miss the opportunity to enter. Whoever bought in time, continue to keep the order and move the Stop Loss to close to 105 to reduce the risk. Anyone who has not bought yet will wait for the opportunity at 104.5. You should not chase the price.
The price has not been able to penetrate the 1.217 zone to create a new high and confirm the expected uptrend structure. However, the rejection force around this price area is relatively weak, just enough to create a doji pattern on the daily chart. We will continue to maintain the old strategy: Wait for the bullish structure to be confirmed to buy.
Prices are still drifting up and there are no downside signs as we expected. The opportunity has not come yet so please wait patiently. Again, while the uptrend is still on, it is at the upper bounds and the market is in overbought conditions. Trend traders should not enter now because the RR ratio is not good and the possibility of a downward correction is very high.
After a slight recovery from the 1.26 zone, the price was quickly forced back to this support zone, reflecting that the buying pressure around this zone is quite weak and the possibility of a breakout is relatively high. Fundamental factors are also supporting USDCAD's possible further downside. Wait patiently for the breakdown signals to enter short orders. Avoid entering orders too early because it is easy to get a bear trap.
The price had a slight pullback after the breakout, giving the opportunity to enter at a good price. The daily chart doji pattern is also showing signs of being broken. Continue to consider buy orders to move up to the psychological resistance zone of 0.80. Stop Loss could be placed below 0.785 in case of a sudden correction.