Feb 26 2021 0
There have been very important changes in the last session. Let's get ready to trade today.
- The strength of the pound was fueled by the country's rapid deployment of COVID-19, which laid the foundation for hope for a strong economic recovery. However, be careful before the pitfalls of this uptrend.
- In a semi-annual hearing before Congress on Wednesday, Federal Reserve Chairman Jerome Powell said that historically, changes in the money supply have no effect on inflation.
- Isabel Schnabel, a board member of the ECB, told Latvian news agency LETA that the ECB will resist any increase in real interest rates (inflation factor in mind) as it can stop momentum. economic recovery of the bloc.
- The 10-year German bond is currently giving yields of -0,293% compared with -0,575% at the beginning of the year.
The price moved up further, penetrating the resistance zone 106 as expected. However, this breakout is showing negative signs for the bulls. It looks like a bull trap, so a correction is not excluded. Therefore, whoever has a buy order should consider exiting the order partially, and moving the SL to preserve profits. The target for the rest is still around 107.
As warned of weak selling pressure around 1.217, the price successfully broke this resistance zone and moved up to the next resistance zone around 1.225. However, then the price dropped sharply again, creating remarkable bearish signals. Hope you guys caught up with this breakout. In the new session, although the bullish structure was established, the selling pressure was strong again. We should not rush to buy but wait for new price action. The potential buy zone will be around 1.21 when reliable bullish signals appear.
After an important bearish signal on the daily chart, what we have been waiting for many days ago, there was a waterfall yesterday, a short time to the target area of 1.40. Anyone who entered a short order according to recommendations should consider partially exiting the order and moving the SL to preserve profits. The next target will be the zone 1.38. In case the price recovers to around 1.41, we can add a short order. In addition, the bulls should avoid entering the market at this point.
The price continues to decline after a breakdown of the price zone 1.26, but has yet to reach the target area of 1.245 and rebounds strongly. The orders have been stopped with positive profit if you move the SL as recommended. Currently the buying pressure is back. The price has also moved above the 1.26 conversion zone, so it is likely to retest the downtrend line, around 1.27. The next reaction will depend on the price action at this resistance.
As warned of a bearish decline around the psychological 0.8 resistance zone, there was a waterfall happening on AUDUSD similar to GBPUSD. In the new session, we continue to follow the bearish outlook. Maintain existing sell orders and take risk mitigation measures. In case the price rebounds around 0.795 with strong bearish signals, additional short positions may be considered.