Mar 22 2021 0
The big swings at the end of the week in the USD created large gaps on the charts. It's all thanks to the Fed. Coins are reacting extremely strongly to this. This is a good opportunity to trade so let's make some money on Monday, shall we?
- The dollar fluctuated strongly in the weekend session, the closing price did not change much from the opening price, but remained high, supported by the high yield of US Treasury bonds under the dovish stance of FED.
- The Fed announced it would terminate the temporary change to the Supplementary Leverage Ratio as scheduled (by the end of this March).
- While keeping interest rates unchanged, Japan's central bank says the margin around its 10-year yield target is around 0.25% on each side of zero. The move could be aimed at creating more movement. in Japan's less volatile bond market as the BOJ attempts to address some of the adverse effects of its stimulus and block criticism of its policies.
- The European Union has the opportunity to get their Covid-19 vaccination back on track after a week of chaos from vaccination discontinuation.
USJPY continued to slow down to the 108.3 zone but could not get out of the range yet. Selling pressure is still evident. Signals about the end of the short-term uptrend are still present. What's missing is the signal that triggers this prediction. We continue to maintain a probe sell order with current conditions. Please wait for the signal to complete the Double Top pattern to fill up the short positions. The next target is 107.
There isn't much to say about EURUSD as the price is less volatile and remains hovering around 1.19. The signal to create a range appeared on the H4 chart, but this price area is quite close to the bottom of 1.185, so it does not exclude the possibility that the price continues to retest this bottom. Don't trade EURUSD temporarily until there are clear signals.
The price is once again retesting the confluence zone 1.38. The bullish signal appeared on the H4 chart but it seemed to have been invalidated by this morning's gap. We should wait for another bullish signal around 1.38 to buy on the main bullish momentum. Stop Loss should stay below this support. The initial target is the upper boundary of the range.
The price is heading towards the confluence zone 1.26 as expected. As mentioned, this is the price zone where we will sell back in the main downtrend. However, the bearish signal seems to have appeared a bit early. The current EP level is not really good. We should only enter with probing volume, or patiently wait for another bearish signal around 1.26 for better RR.
Price returned to the support 0.77 as expected. Please continue to maintain probing sell orders and replenish positions when the price breaks this support level. The next target is the 0.76 zone.