FOREX CHART ANALYSIS MAR 24 - WAITING FOR BIG NEWS
The new actions of the Fed have stopped the rise of the US dollar although there has not been a new giant stimulus package yet. In the short term, the USD may continue to correct. Please be aware of this possibility and pick your trading strategies with caution.
- The bill on the third stimulus package of the US continues to be delayed by the Senate.
- Bank of America said it is likely that there will be coordination to intervene in the currency market if the USD index exceeds 105 and the EUR/USD rate drops below 1.05, the lowest and highest level since 2002.
- The growth rate of new Covid-19 cases across the EU seems to be slowing, although the total number of infections and deaths continues to be alarming. EU countries also impose stricter regulations to limit the spread of disease.
- In its latest monthly report, Budesbank forecasted that the German recession was inevitable and the economic recovery would only begin when the pandemic was effectively prevented.
USD/JPY retains high volatility but the price is stuck at the peak of 111.5. A chart of triple top / rounding top chart patterns is forming. For this model, the sell signal will be triggered when the price breaks the neckline (price zone 109.5) clearly. In addition, do not trade at current prices. In case the price keeps going up and there are noticeable bearish signals at the upper border of the channel, you can consider selling in the short term.
Prices continue to accumulate but have not decreased yet. However, the recovery is not strong, showing that the selling side has not weakened. The important price area to notice today is the 1.083 zone. If it is broken, it could cause the price to sharply adjust to the zone of 1.10. Conversely, the price could fall to the bottom of 1,060 (this possibility is less likely). Previous sell orders should move the Stop Loss to reduce risk.
Prices once again retest the lowest bottom for more than 3 decades. Retesting multiple times in a short period of time increases the chances that it will be broken. New sales will be triggered when price breaks below 1,140. Those who are bottom fishing should carefully place Stop Loss. Your only advantage right now is just a good RR ratio.
Not much has changed on USD/CAD chart. Continue to keep the view down for the currency pair. The target is zone 1.40. In addition, the return of the uptrend is only confirmed when the 1.46 peak is broken.
The continuous retest of the area of 0.59 - 0.600 is raising the price. There is a possibility that AUDUSD will continue to recover. If the breakout is successful, the price can rebound to MA20 on the daily chart. Longer brother orders can continue to hold in the short term. You should postpone the Stop Loss to reduce the risk.