Mar 09 2021 0
The USD has broken through the important 92 mark, which is opening up the possibility of further recovery for the USD.
- USD continued to hold its strength, rising to the highest level in 3 and a half months, benefiting from the increase in US bond yields and the decrease in risk demand in the stock market.
- Analyst Bofa - Athanasios Vamvakidis said that strong fiscal stimulus, economic reopening process is accelerating and greater consumer spending are factors driving USD.
- Global capital markets slipped down at the beginning of the week when the US Senate approved a fiscal stimulus package worth $1.9 trillion. It has put new pressure on the bond market, overvalued technology stocks, and on inflation.
- The euro zone investment sentiment index jumped to a more than a year high in March, fueled by an improved view of the current situation, a survey showed earlier in the week.
What we waited for did not come. There was no bearish signal and the price did not break down to 108. Instead, it continued to go up and is now trading just above 109. The market is in a state of overbought. We still keep the old judgment: should not continue to follow the uptrend in this period. Adjustments can come quickly, forcefully and unexpectedly. Reversal traders should look closely at the 109.5 - 109.7 zone. This is the highest price since the end of March last year. If there is a reliable bearish signal around this price zone, sell orders, especially on the daily chart, can be considered.
The buyers could not hold the lower boundary of the descending channel, losing the 1.190 mark relatively easily. With this price action, we expect the price to approach 1.180 soon and our next action will depend on the price action here. We should not follow the downtrend now because the amplitude is not much. Buying is not the right time because of the lack of reliable signals. We are not trading for the time being.
The price fails to break above the 1.385 zone and is falling again. Please continue to maintain target sell orders around the 1.365 - 1.337 zone. In case the price breaks out of 1.380 with strong force, we can consider adding a sell position.
The price is moving quite uncomfortably in the range with a relatively wide range. Please continue to maintain previous prospective sell orders. Only add orders when the price breaks the support zone 1.26. For the bulls, watch the 1.275 zone. This is the price zone that determines the trend structure in the short term.
After yesterday's bounce early, prices continued to fall for the rest of the day and now return to the previous session's low. We keep keeping our previous short positions and shifting SL to reduce risk. The target remains the same, around 0.760.