Jan 14 2021 0
The market's spotlight today will be the stimulus proposed by President-elect Joe Biden.
- Vice President Mike Pence told House of Representatives Speaker Nancy Pelosi on Tuesday that he opposed invoking the 25th Amendment to remove President Donald Trump from his term following the siege of Trump supporters Capitol last week;
- ECB President Christine Lagarde said the European Central Bank's forecasts for a rebound this year remain in place despite new restrictions on economic activity in some Euro-zone countries, free those measures were lifted by the end of March;
- Ten-year Treasury yields fell nearly 7 basis points from their 10-month highs following strong demand in the $ 38 billion bond auction and comments from bureau officials. The Federal Reserve reiterated that monetary policy will continue to support the economy, thereby cooling the recovery of the USD;
After the bearish engulfing candlestick formed on the daily around the 104.2 confluence, the price did not continue to fall as expected but only accumulated, however this is a normal price action, and does not cause much disadvantage for sell orders. our. Brothers can continue to hold the existing orders, expecting the price to fall back soon with the target at 103.
The price has fallen back from the 1.220-25 conversion zone as expected. Those who have timely added orders, continue to hold, consider dragging the stop-loss to minimize the risk. What we are waiting for now is the price break the support of 1.215, then the new target will be around 1.20 and the brothers could add short positions.
The price was rejected quite strongly when approaching the hard resistance zone 1.37, suggesting that breaking the threshold is quite difficult to happen in the short term, expecting the price to continue to correct downward, but the signals to enter the order. This is not clear so we should avoid entering the command at this time, need to observe more.
New movements are detrimental to buy orders in the short term for brothers with reversal transactions. The price is showing signs of re-testing the 1.265 bottom, the downside pressure is quite large, you might consider exiting the current orders. In the case of hold, we would abandon the buy strategy completely when the price breaks down the 1.265 zone.
The 0.78 price zone held, we expect the price to retest the uptrend line around the 0.77 zone once again. New sell orders should only enter when the price breaks this uptrend line. For trend traders, you should not enter new orders now because the price has had a hard time making new highs, as evidenced by the shoulder-head-and-shoulder reversal pattern, if the price can break through. at 0.78, the amplitude to the next resistance is not much.