Jan 18 2021 0
The USD continues to recover, and this move is creating many notable reversal patterns on major currency pairs.
- Markets in the EU hesitate to weigh between more stimulus from the US and new blockade orders regarding a more complicated disease situation.
- The UK reported over the weekend that its GDP fell 2.6% in November, returning to around 8.5% lower than seen in February last year, with the services sector playing a role. is the main drag on growth.
- The dollar's gain after the new stimulus was announced was limited by Fed Chairman Jerome Powell showing a very "dovish" tone in an interview broadcast live on Thursday, though he did not. explicitly exclude a reduction in bond purchases at the end of the year, the Fed is not expected to raise interest rates until 2023.
- China's Foreign Ministry spokeswoman Zhao Lijian commented at a press conference in Beijing on Friday that China firmly opposes new U.S. sanctions on its companies. , after the Trump administration added nine Chinese companies to the Pentagon's list of companies allegedly linked with the Chinese military.
Price did not change much in the last session of the week, the head and shoulder reversal pattern still exists and waits for completion when it breaks the 103.6 zone. The brothers continued to maintain the old tactics, following the mainstream decrease. Maintain existing short orders, add new orders when 103.6 is completely broken, the target remains at 103.
The price is still falling as expected, a new low has been established, the 1.21 zone has been approached, you should minimize the risk by partially exiting short orders or moving SL. Our target is around 1.20 but be careful with unexpected bullish corrections.
Unable to get over the important 1.37 price range, the price adjusted downwards and created a set of strong sunken candles on the daily basis, the current market conditions are only suitable for traders who specialize in trading sideways prices. However, it should be noted that the RR ratio is not really good.
The price did not break the threshold as expected but bounced up sharply from the 1.265 range, so sell pending orders were not activated. This price action created a very noticeable set of bullish engulf candles on the daily. The bearish pin bar candlestick pattern created during Friday session is also invalidated, which is a good sign for the brethren to reverse trade. However, we should wait until the price breaks down to 1.28 before considering new buy orders.
The price was once again rejected by the 0.78 zone, creating a set of bearish engulfing candles on the daily. It is currently retesting the 0.77 zone, which is a very important price zone because when it is broken, the uptrend line will also be broken and the double-peak reversal pattern is completed, a very nice combination of signals for you. I reverse transaction. Get ready!