Jun 10 2021 0
In general, the market is strongly dominated by the USD. This could continue today with US inflation data. Avoid over-trading to minimize risk.
- The dollar was little changed in the first half of Wednesday's session. Traders are still awaiting the upcoming US inflation data and the European Central Bank (ECB) meeting to gauge the pace of the global recovery and the opinion of policymakers about reducing stimulus.
- The leaders of the European Union and the US will pledge at a summit in Brussels next week. They will discuss ending the trade disputes and call for a new study into the origins of COVID-19, according to a draft statement.
- China's manufacturing input prices in May rose at the fastest rate in more than 12 years. This is due to higher commodity prices, underscoring global inflationary pressures at a time when policymakers are trying to revive growth due to the pandemic.
Noticeable bullish signal has appeared on both H4 and daily, the uptrend line is still holding, and according to the plan, we can consider buying, the initial target will be 110.3. Place the SL outside the channel line.
In addition to the bearish signals mentioned in recent sessions such as the head and shoulders pattern, the price breaking the ascending channel line, in the past session, there have been more bearish candlesticks on both daily and H4 which are Good signal for the sellers. You continue to hold sell orders, the initial target is still around 1.207, further is still the 1.20 zone. We only abandon this strategy when the 1.225 resistance area is clearly broken, confirming the return of the uptrend.
A bearish signal also appeared on the GBPUSD pair, but it did not change the situation significantly because the price is still in the range, has not broken out yet. We continue to wait for range breakouts and should not trade at this time.
There have also appeared more signals supporting the strategy of buying on USDCAD, but the area of 1.213-15 has not been broken yet, so the rounding bottom pattern is not confirmed yet, we should only keep the existing orders, still set target around 1.22, waiting for next price action to judge if price can rise above this resistance.
With AUDUSD too, no change, we continue to hold short-term bearish sell orders, but we should pay attention to the 0.777 to 0.780 zone. If this zone is broken, the possibility of price returning to the uptrend is quite high.