Jun 04 2021 0
The market has identified a clearer direction. However, it should be noted that today's session will have one of the strongest data of the month released. Also this is the weekend session. Pay attention to risk management.
- The US dollar rose on Thursday as traders awaited a slew of US economic data that could weigh on the Fed's moves at its meeting later this month.
- The US economic indicators in the last session were all better than expected, notably the ADP data near 1 million.
- The Fed is becoming the go-go after other major central banks have begun to discuss and even set timetables for rate hikes, typically the Banks of New Zealand, Canada, Norway and their policymakers. The Bank of England also alluded to this, moves to help support the currencies of countries.
- Economic activity in the euro area surged in May as some of the lockdowns were eased.
The price has increased strongly in the last session and did not fall to the 109 area as expected, this rally is considered to be missed. The new session needs to observe the current peak of 110.2, if it is broken, the price will likely approach the next resistance at 111. However, the RR ratio for this breakout (if it happens) is not good, you should avoid trading.
The bullish channel on EURUSD is broken again, and this time the signal seems more reliable, the head and shoulders reversal pattern has also been confirmed, short-term reversal traders can consider the following: sell orders, preferably after slight corrections to the 1.215 zone, the initial target will be around 1.207, then 1.200.
Unlike EUR/USD, GBP/USD has not been able to break out of the range, therefore, we do not have a new signal to trade yet, we should just continue to “wait and see”. If the price breaks the range, the next notable support-resistance zone will be 1.400 and 1.435, respectively.
The worst case scenario for USDCAD bottom-fishing orders did not happen, the price continued to bounce back from the 1.22 support area, the upward force this time was also quite good with the bullish engulfing pattern formed on the daily chart. We continue to maintain our previous buy orders, targeting initially around 1.22. On the other side, the sellers only consider continuing to follow the downtrend when the price breaks the 1.20 support, however a clear break signal is needed, preferably on the daily.
AUD/USD also had a big change, after the strong drop in the last session, the price got out of the range 0.77-0.78, sell orders can be considered, the initial target is 0.757-0.760 area, this is also the line. The neckline of the head and shoulders pattern is forming on the daily frame, remember to pay attention.