Feb 09 2021 0
The USD rebounded strongly in the first half of Monday session, but then quickly exhausted and ended the first session of the week with a remarkable bearish candle. On currency pairs, the majority of sensitive price zones are being approached.
- The dollar rebounded in the European session earlier this week after some losses as Friday's disappointing jobs report questioned the strength of the US economic recovery.
- Treasury Secretary Janet Yellen added that the United States could return to full employment by 2022 if it enacted a strong enough stimulus package.
- Brent futures for next month delivered over 60 USD/barrel in the first session of the week, hitting this level for the first time in more than a year. The reason is attributed to the expectation of new stimulus measures of the United States as well as the compliance of producers to cut oil production, which has made reserves gradually decrease.
- Yields on US longest-term standard bonds hit 2% for the first time in nearly a year, fueled by stimulus negotiations and inflation expectations.
Prices continue to generate bearish signals on both the daily and H4 charts. The first target around 105 is approaching. If you have a sell order, you should consider moving the SL to reduce the risk. In case the 105 area falls, the price may return to the lower boundary of the channel, around 104.4. Uptrend buyers should not rush to enter orders without certain signals.
The recovery momentum has temporarily slowed down just before the 1.21 zone. The bearish signal also appeared on the H4 chart, but it was quite weak. We should only consider spreading tentative short orders without rushing in with standard volume and waiting for the opportunity to replenish positions afterwards. In case the price breaks down the channel, then suspend sell orders and wait for price action around 1.217 then decide.
The bulls are continuing to put pressure on the resistance zone at 1.375. The likelihood of it being destroyed is increasing. We continue to focus on observing this price zone. Buy on confirmation of a breakout signal. Target then might be around 1.385 - 1.390.
The price broke the narrow accumulation zone and is heading to the support zone 1.27 as expected. In case the price successfully penetrates the 1.27 resistance zone, it may retest the bottom around 1.26.
The price has approached the 0.77 zone around the upper boundary of the short term down channel. This is the seller's last stop. Please continue to wait for the signals to sell. In case this price zone falls, we will temporarily abandon sell orders.