Mar 25 2021 0
USD is standing at the highest price threshold for many months. Please note the possibility of a breakout because this can bring about big changes on the currency pairs.
- With many supportive factors, USD sometimes reached the highest level in 4 months.
- The new wave of risks emerging globally includes:
- Potential tax increases in the US.
- The new wave of Covid-19 infections in the EU.
- Tensions between Western countries and China.
- The UK's IHS Markit General Purchasing Managers Index rose to a seven-month high at 56.6 in March from 49.6 in February.
- Factory activity in Germany also surged to a record high in March and the service sector expanded after five consecutive months of decline, suggesting Europe's biggest economy is on the verge of a massive shutdown. Translate. However, this data is collected before a blockade decision is made.
The price was once again rejected around the 108.3 level, and is currently moving sideways in the 108.3-109.3 range. SELL signals are still unchanged. We continue to hold probes and wait for opportunities to replenish positions. However, it should be noted that the longer this accumulation zone is, the less likely it is that the price will fall as expected, because it shows that selling pressure is not large enough. The bulls may be accumulating, waiting for a chance to return to the trend.
Prices successfully broke their lowest level since December of last year as expected. However, the breaking force is not strong and has not yet dropped below the level of round number 1.18. Therefore, you should only consider probing orders. Wait for the price to successfully break this round number to add the positions. The target will be 117.
After an important breakout of 1.38, the price continued to go down. It makes sense to quickly change our tactics. Sell orders are profitable. We can consider moving Stop Loss to minimize the risk. The target is still around 1.355-60. There was a slowdown around the 1.37 price range, but the refusal was quite weak, and the possibility of an upturn from this zone is not high.
The recovery is slowing down around the 1.26 conversion. The spinning top pattern has emerged, and this will be the key to our next action. Specifically, if this pattern is broken, it will be a confirmation signal for the sellers. You might consider short orders. On the contrary, correction might continue to move up around 1.275. It should be noted that you should rely on the close of the candles on the daily chart to confirm.
The downside momentum has slowed to around 0.76. However, the buying force around this zone is not strong, a good signal for the sellers. If the old order remains, you can keep it. Consider adding sell orders again when the price breaks below current support. The next target is the lower boundary of the long-term uptrend channel.