Jan 28 2021 0
The USD has had a boom, making big changes to the currency pairs.
- The Fed maintains its existing monetary policy and a "soft" tone that the market has seen recently.
- The dollar reversed its decline against more risky currencies, even as hopes of economic recovery were fueled by the International Monetary Fund's upgrade of its 2021 global growth forecast.
- There was a report on Tuesday showing that the European Central Bank (ECB) is studying whether the Fed's policy differences with the ECB will drive the euro. ECB President Christine Lagarde has repeatedly said they will carefully monitor the exchange rate of the common currency.
- The EU and AstraZeneca scheduled the meeting at 17:30 GMT but the AstraZeneca side withdrew from the meeting as both sides continued to blame each other for what was going on.
- Senate Majority Leader Chuck Schumer said Democrats could try to get through most of President Biden's $1.9 trillion spending package.
After continuously testing the long-term downtrend line, the price has officially broken this trend line with a remarkable increase in the daily chart. However, as said of the 104.4 level, the bulls need to see a new high to confirm a bullish structure. Standard buy orders should be placed after the price has successfully broken out 104.4. In addition, in case the price re-tests the trend line with a noticeable bullish signal, exploration buy orders (if you can take more risk) may also be considered.
The double bottom pattern failed and the flag was completed, but after the breakout the price was rejected quite strongly by the 1.205 zone. Theoretically we can consider sell orders with this pattern. However, the price is showing relatively strong buying pressure. Moreover, it is facing a strong support zone, which is the confluence of the long-term uptrend channel and psychological resistance zone 1.2. Therefore, sell orders will face many risks. You can still consider sell orders but only in the short term and the target should not go beyond 1.2
The price did not break the threshold as expected, continued to "stuck" in the price range of 1.363-1.375. There should be no action at this time, so we should wait for the price to exit this range before making any trading decisions.
Price goes under scenario two. The price zone of 1.28 has been broken and reversal traders might consider action. The bearish pin bar pattern on the H4 chart was also invalidated immediately after forming and this is a good sign. Buy orders can place their initial targets around 1.29.
The short-term down channel has been held and the important psychological resistance of 0.78 has not been broken yet. Instead, the price dropped sharply after creating a bearish pin bar signal around the upper boundary of the channel. The selling pressure is good now and the key support 0.763 has also failed. You might consider selling orders again.