Mar 19 2021 0
The market had panic session yesterday afternoon when US bond yields breakout to new highs, leading to the rise of USD.
- USD rebounded sharply on Thursday session, supported by rising US Treasury yields even after the Federal Reserve reiterated that it was in no hurry to raise interest rates while raising the economy's growth forecast. the world's largest.
- In an effort to calm the market, European Central Bank (ECB) President Christine Lagarde said it may be a while before the ECB's increased speed of money printing is seen.
- The German car manufacturing sector lifted the country's DAX index to a full-time high on Thursday, while euro-zone blue-chip stocks soared to pre-pandemic levels.
Although the USD rebounded sharply in the past session, it did not have too much impact on USDJPY. This is a good thing for those who are on the top side at this time. The sellers seem to still control the 109.3 zone. Continue to maintain previous prospective sell orders. You may consider adding positions when the price completes a Double Top pattern, breaks below 108.5. The bulls should not enter the market at this time.
What we predicted did not happen. Price cannot establish a new bullish structure without being able to cross the important 1.20 mark. The fact that the price continuously changed direction strongly is showing the market's instability. We should avoid trading EURUSD at the moment as there is no clear signal.
The price has returned to the upper boundary of the range as expected. I hope the range traders have completed the exit as recommended. The bearish signal has also reappeared around this zone. However, this range we have eaten twice so the amplitude decrease is not much. Plus the downward channel line has been broken, so you should not continue to sell down. Uptrend traders also need to wait until the 1.4 price zone is completely broken before considering buying orders.
We have been "tricked" by USDCAD Price rebounded sharply after breaking through 1.245. Previous sell orders have been stopped out. This bear trap action is suggesting a further short-term upside correction. The target will be the 1,260 confluence zone around the long-term downtrend line. However, I do not encourage you to trade against the trend at this time. Instead, you should wait for a signal around the confluence zone.
The price is responding well to the previously broken uptrend line. Down signals have also appeared. We can consider short orders. Consider adding positions only when the price breaks below 0.77.