May 10 2021 0
On May 10th today, we have the Non-farm payroll report and the vote result in the United Kingdom. Those alone have created big movements on the charts. Check out the price action of the currency pairs and how you should trade accordingly.
- Nonfarm data shocked the market, but in the negative direction, the actual number was only 266k compared to expectations of 990k.
- GBP: Political uncertainty regarding the Scottish vote is limiting any bullish momentum, as this vote is likely to provoke a war between the Scottish National Party and British Prime Minister Boris Johnson on another independent referendum vote.
- Commodity prices continue to rise sharply over the past week, aluminum prices have approached levels last seen in 2018, while copper prices reached a 10-year high as investors bet on a rapid global rebound. after the pandemic, led by the US. Iron ore futures rose to record highs on Friday, while crude also climbed.
The pennant pattern we observed failed to formulate. Currently, the price has re-tested the mid-long-term uptrend line. The current price area of 108.5 is the price that we want to buy, however, the bullish signal has not appeared clearly, the brothers entering the order are still relatively risky even though the RR level is good. Consider continuing to wait until there are clear bullish signals or just enter a tentative order.
The weakening of USD has made EURUSD rebound strongly, the price channel line has been clearly broken since the beginning of the year, approaching the peak of 1.215. Previous sell orders based on the short term reversal signals have been stopped loss, should you move the SL. In the new session, pay attention to the 1.215 zone, the bulls can prepare to return to the market and consider buying when this price zone is completely broken. In addition, in case the price re-tests the 1.210 zone with the accompanying bullish signal, buy orders can be considered.
The price showed signs of breaking out of the upper bound of the range, around 1.40. You could consider short-term buy orders to the 1.415 zone.
The price area of 1.210-15 has been approached, while the previous sell order is still in progress, consider exiting / moving SL to reduce the risk, the possibility of adjustment is increasing. Should wait for the opportunity to enter new sell orders at a better price above.
The price has broken the range, the buy orders have been activated, keep the position, set the initial target at around 0.79, the price action here will give us the next clue.