Feb 03 2021 0
The USD index continues to recover and broke the important 91 barrier. This is increasing the resilience of the world's most liquid currency.
- Central Bank of Switzerland executive member - Thomas Jordan admitted SNB had to intervene heavily in the market last year to reduce pressure on CHF.
- The RBA did not change its interest rate policy as expected, after the policy decision, the AUD fell again. Notable policy points include:
- Expansion of quantitative easing (QE):
- The RBA provides policy direction that it does not expect sufficient favorable conditions to raise interest rates until as early as 2024.
- Prospects for the economic recovery also improve slightly.
- Exchange rates have risen and have been in the upper range of the amplitude in recent years.
- The dollar fluctuated near a seven-week high on Tuesday, most of the momentum coming from a sell-off in the euro as a blockade in the EU aimed at curbing the widespread pandemic affected consumer spending.
The price has not yet broken out of the 105 zone, although it has not been strongly pulled back from this zone. More bearish bars have also appeared. On the daily chart, the spinning top pattern also formed, indicating an increasing selling pressure. Be careful with price corrections. We keep the two old strategies: Wait for a standard pullback to around 104.5 and buy on signal. Or, in case the price breaks down to 105 with sufficient force, invalidating the spinner pattern, buy orders may be considered. The next target is around 105.7. However this scenario is not given priority.
The price finally broke the support zone 1.205, but has not yet broken through the long term uptrend line. The rejection force around this price zone is also quite clear. The spinning top pattern also formed on the daily chart. Those who already have short orders can consider holding the position and expect the decline to continue. Those who have not had an order should wait for the price to invalidate the spinning top pattern (breaking the bottom of this pattern) to consider entering the order.
The price dropped to the bottom of the range but was rejected again. This narrow accumulation segment has lasted for more than half a month, so when the threshold is broken, the price can move very strongly. Continue selling strategy when prices break down to the lower band and buy when prices break above the upper band.
Price continued to be rejected by the area of 1,287 and a bearish signal appeared around this zone. It is likely that the price will continue its downward momentum if the short-term uptrend line is broken. The next support zone at which price could approach is 1.27. Short-term positions may be considered. Also, for reversal traders, continue observing the area of 1.287. Only consider buying orders when this price zone is broken.
The price broke the old bottom and made a new bottom but recovered immediately and made a spinning top pattern on the daily frame. This is not a very good signal for the sellers. The price is also in the lower zone of the descending channel, so consider exiting short orders. Wait for the price to bounce back to the 0.77 conversion zone before coming back to a better price point.