Feb 05 2021 0
Today we will have the NFP data, so watch out for sudden changes in the market.
- The dollar traded higher in early European trading on Thursday, fueled by rising bond yields as pessimism about the US economic outlook faded.
- US economic data is also showing an improvement with Wednesday's ADP data showing the private sector created an additional 174,000 (net) jobs for the month through mid-January.
- Concerns about the EU's difficulty in deploying the coronavirus vaccine are weighing on the prospects of the EU region making the EUR's rivals more attractive.
- BoE kept interest rate policy as expected, GBP recovered mainly because BoE avoided commitment to use negative interest rate policy.
The spinning top pattern has been invalidated and the price follows the second scenario, continuing to make a new high. The upper boundary of the rising channel, around 105.7, was approached. Breakout traders should consider taking profit or moving SL to reduce risk. It is likely that corrections will occur from the current price range. We continue our strategy to buy, and the pending buy points will be around 105 and 104.4.
Prices are still falling as expected. You should continue to narrow the SL for short orders. The target would be zone 1.19. The long-term uptrend channel has also been broken. This is a good signal for us to stay with the sellers. For those who have not had an order, wait and look for opportunities when the price retest at 1.20.
The price broke down to the lower band but then recovered strongly to create a bear trap. Those who already have sell orders should consider exiting early because the price is likely to keep going up and retest 1.375 in the short term. I do not encourage you to trade GBP at the moment.
The price did not re-test the 1.27 zone, but turned up the confluence zone of 1.285. This is a decisive price area. Do not rush to trade but wait for new signals. Prioritize buying when the 1.287 peak is broken, because then the short term uptrend will be confirmed, and the long term downtrend is broken.
The price did not retest the 0.77 zone as expected, so no new order was added. The bottom of the channel is being re-tested but the position to enter is not favorable, so avoid entering new orders at this time. Instead, we should maintain the selling strategy around the 0.77 price range as before.