Mar 02 2021 0
After last week's sell-off, a slight recovery is in progress so we need to slowly watch for these price action and avoid rushing into orders.
- The dollar weakened early on Monday, with risky currencies starting to recover as US Treasury yields stabilized after last week's heavy global sell-off.
- Money markets have recently been receiving signals from the global bond market, where yields have risen on predictions of a rapid economic recovery and expectation that central banks will have to tighten up. tightening monetary policy earlier than expected.
- The US's approval of Johnson & Johnson's Covid19 vaccine (NYSE: JNJ) also improves the economic outlook.
- Oil prices recovered more than $1 in the first session of the week after the US House of Representatives approved a huge economic stimulus package, although a slowdown in plant activity growth in February of China has limited growth.
Price has finally approached the target of 107. If you keep the buy order as recommended before, consider exit because the possibility of a downward correction is quite high. Short-term reversal traders should wait patiently for reliable bearish signals before entering orders. The initial target for the correction, if any, would be 106, followed by the lower boundary of the upside channel.
What we waited for did not come. There is no confirmation of a return to the uptrend around the 1.21 price zone. Instead it was a breakout. Currently, the price is retesting the previous bottom around 1.203. This is an important price area that will determine the structure of the market. If it breaks, the up structure is gone and we will abandon the buy strategy. We should not rush to trade in the new session but wait and see the price action here.
The recovery momentum after last week's sell-off is quite weak. The price cannot get past 1.40 and is falling again. This is a good sign for the sellers. Keep short positions with a target around 1.38.
The price failed to break through the downtrend line and bounced back. There are currently no signals we can take advantage of. During the new session, we will look at the barriers around 1.26 and 1.25. Price action around these price zones gives us the next clue.
The price is still correcting upwards, approaching the 0.78 zone. We should not rush back to trading after the last drop. Note the possibility of forming continual patterns (such as the flag pattern). Price action around 0.78 is crucial in determining the direction of the next move.