Jan 21 2021 0
The inauguration of Mr. Joe Biden went smoothly, the market responded positively to this. Glances are now on new policies that the Biden administration will enforce.
- Central Bank of Canada kept interest rates unchanged, but the economic outlook was changed to a more positive direction, thereby boosting the CAD.
- Washington is gearing up for the tense inauguration of President-elect Joe Biden on Wednesday, where more than 25,000,000 National Guard troops have been deployed. These unprecedented security measures are to secure the inauguration from an attack similar to that of the protesters on the Capitol on January 6, which killed five people.
- Market sentiment improved after comments from the former Fed Chairman before the Senate Finance Committee. Specifically, she pointed out that the additional fiscal spending will well support the US economy. Many Republican lawmakers think this spending plan will cause a large budget deficit and they oppose it. However, Ms. Yellen believes its benefits will far outweigh the costs in the long run.
- Policy advisers in Beijing said China will seek to adjust its economic policies to make consumers spend more, after retail sales have emerged as a weak point in data. economic, emphasizing the need for reform.
- UK inflation accelerated in December. This could be the start of the new year's inflation spike as epidemic prevention measures, the Brexit problem, and the combined economic recovery have pushed up spending.
The price movement is still as expected, favorable for the sellers. Price has approached the neckline of the Head and Shoulders model, which is also the triangle pattern. We continue to maintain the short positions that are profitable and consider replenishing positions when the price breaks the 103.6 zone. Target remains at around 103.
The price was rejected by the 1.215 zone, but the decline was quickly halted around the 1.21 zone and failed to make a new low. This is not a good signal for the sellers. Consider exiting short positions if available. It is likely that the price will correct to the 1.225 zone in the short term. Price action around this zone will hint at the next direction.
The price was strongly rejected by the 1.37 zone, creating a noticeable drop in the pin bar. Ranging traders can take advantage of this signal because the RR ratio is now relatively good. However, it should be noted that the fact that the price continuously re-tested this upper boundary many times in a short time showed that the current selling pressure is quite weak. The possibility of a price breakout upwards is increasing, and in that case, trend traders might consider returning to the market.
The price has fallen as expected, but is quite surprised when it can retest 1.265 and is showing signs of breaking this zone. The selling faction is clearly showing its advantage. The downtrend is likely to continue. Consider following the trend when the price shows a clear breakout signal.
The price did not break the 0.77 zone as expected and is continuing to move up, so sell pending orders are not triggered. In today's session, focus on observing the price zone of 0.78 which is also the upper boundary of the short-term down channel. In the case of bearish signals, probing short orders may be considered. Note: Only enter sufficient volume when the 0.77 zone is broken.