Mar 30 2021 0
The first session of the week did not have many significant changes when the USD did not fluctuate strongly.
- The common currency is heading for its biggest monthly decline since mid-2019 as Europe's already sluggish vaccination program encounters a new wave of infections even as speculative position data shows that Investor is still maintaining a lot of buy orders for EUR.
- On the dollar side, it has been in high demand over the past few weeks, cautious market moods have pushed capital flows into safe assets, while economic strength and rapid vaccine rollout. US has increased the attractiveness of the greenback.
- According to a report by Inchcape - a marine services provider - via Bloomberg, the stranded ship is emerging after digging 27 thousand cubic meters of sand. This news is good news for the global supply chain and it (combined with pandemic demand demand concerns) has also driven the price of oil down by 1.5%.
After the signal of breaking the resistance to create a new high, the price had a "textbook" type correction to the 109.3 zone. The bullish signal also appeared around this price zone. Hopefully you have added trend-following buy orders as recommended. The target of this new rally is around 110.5 - 110. Place SL below the area 109.3.
The price recovered very weakly then was forced to drop again, currently hovering around the bottom set at the end of last week, around 1.176. This is a good signal for the sellers, as weak buying pressure makes a breakdown increase. You continue to maintain the current sell orders and wait for the opportunity to replenish your position at the 1.185 zone when the price retests the downside channel line, or when the price breaks down to 1.176. The initial target will be 1.17.
As expected, quite a nice bearish signal appeared on both the H4 and daily frame. When the price retests the confluence area of 1.380 - 1.385, you might consider adding sell orders according to the newly formed down price channel. The target is still 1.36.
The price remains in a narrow range around 1.26, indicating that the selling pressure is not strong enough, and the possibility that the price will continue to move up is increasing. When showing signs of breaking above threshold, you might consider short-term buy orders to move up to the 1.270 - 1.275 zone.
The price level continued to level off around 0.765 and created a doji on the daily chart but it does not make much sense at this price zone. In general, if there are still sell orders, you might continue to hold and target around the long-term uptrend line. In case the price continues to go up, watch price action around the 0.77 zone. An opportunity to add orders may appear in this area.