Jun 02 2021 0
Here is how you should trade the market on Wednesday.
- Crude oil prices surged on Tuesday, with Brent up to $70 a barrel, amid market optimism about the outlook for demand growth as the global economy recovers.
- EU May inflation rose 2%, slightly above expectations of 1.9%.
- The US manufacturing PMI came in at 61.2, higher than the forecast of 60.9.
- Eurozone manufacturing activity expanded at a record pace in May with the purchasing managers index rising to 63.1 in May from April's 62.9, above the initial estimate of 62.8, which was a high since the data began to be surveyed in 1997.
- Traders are betting that the UK's impressive rollout of a Covid-19 vaccine will lead to a quick and healthy economic recovery, which has given GBP more traction.
The downtrend on USDJPY has leveled off, the price can't approach round number 109 yet, so we can't take any action at the moment, continue to wait patiently around 109, if bullish signals appear price can consider buy orders.
The price was rejected again when approaching the 1.225 zone, as mentioned, the uptrend is confirmed to continue when this resistance is broken, but now it is not recommended to buy again, we should continue. keep waiting and watching. In addition, attention should be paid to the possibility of forming reversal patterns.
The breakout signal we were waiting for did not appear on H4, nor did it appear on the daily, so the buy orders were not triggered. Instead, there are bearish signals as the price is once again rejected at the upper boundary of the range, with these new selling pressures appearing, in the short term, the price will likely drop to the lower border, around 1.41, in the short term. deeper than the 1.40 round number area. We will wait for the price action in this area before making a decision.
The price has retested the 1.20 support area and was rejected again, the buying pressure around this area is still quite good, creating a bullish reversal pattern on both daily and H4, so the reversal can still hold. order, set an initial target around 1.22.
The price is still heading towards the upper edge of the range around 0.78 level, we will wait and see how the price action in this zone before making a decision, and the current condition is not suitable for trading. In general, the market is still mainly following the movements of USD, while this currency is still accumulating in a narrow range and waiting for non-farm data at the end of the week, it is unlikely that any significant breakouts will happen. On the currency pairs, the opportunity has not come yet, please wait patiently!