Mar 01 2021 0
The fist day of the month has surely brought us surprises. Check out our chart analysis for more updates.
- The dollar rose sharply on the weekend session, fueled by a surge in US Treasury yields, while earlier, more risky currencies were hit hard by fears that central banks would have to tighten policies soon than expected.
- Also regarding developments in the bond market, the two ECB policymakers said the European Central Bank is monitoring the recent increase in government borrowing costs but will not aim at the level. a specific yield or mechanically reacts to market dynamics.
- Government bond yields around the world have rebounded from some of its historical lows in recent weeks, largely reflecting expectations of rapid inflation in the US.
- The US House of Representatives has officially passed a new stimulus bill worth 1.9 trillion USD.
Thought that after a weak breakout around 106, the price had a correction. However, upon re-testing this price zone, it generated a bullish signal and returned to the uptrend, establishing a new high to reinforce the current bullish structure. The target 107 is very close, so please continue to move SL to the previous buy order. We should not enter further orders at this time because the possibility of a downward correction from the confluence area 107 is very high. Short-term reversal traders should watch for price action around this 107 zone.
After the bearish signal was warned on the daily chart, the price fell sharply to the 1.21 zone as expected and there was a time to penetrate this price. However, the short-rank tank structure remained. Combined with the confluence factors around 1.21, we still have some confidence to follow the bulls. What is missing is a candle trigge. We should be patient for this!
After the previous waterfall, the last session of the week continued to decline. It was only blocked at the opening session of this week only. The next target price area for sell orders around 1,380 is not yet approached, so we keep holding the order and moving the SL to reduce risk. At this time, all sell orders had positive SL after two moves. The temporary correction is now heading up the 1.40-41 zone. Sellers should continue to closely observe price action in this area. If there are noticeable bearish signals, we can continue to add new sell orders. Buyers should still avoid joining the market at the moment.
The price re-tested the 1.27 zone as expected earlier. With that said, our next reaction will depend on price action around this zone, but for now nothing is clear here. The uptrend seems to be halted but looking at the momentum of the price, especially on the daily chart, it is difficult to believe that prices will be strongly rejected in this zone. We continue to observe the battle between the two sides and wait for a clear outcome to decide later.
AUD/USD continued its decline as expected, broke the 0.78 barrier and easily approached the 0.77 price zone. Currently, there are signs of recovery. Whoever still has sell orders should consider exiting. In the short term prices may continue to go up. After the recent strong drop, you should pause and watch. Don't get too excited.