May 27 2021 0
The USD Index is rebounding sharply from multi-month lows, regaining the key 90 mark.
- The Reserve Bank of New Zealand (RBNZ) surprised the market by predicting that it could raise interest rates as early as September next year.
- Federal Reserve officials have also reiterated that they won't change their extremely loose monetary policy stance anytime soon, despite San Francisco Federal Reserve Bank President Mary Daly told CNBC that they (officials) are "talking about cuts".
- Bitcoin, the world's largest digital currency, resumed its recovery Wednesday after a massive sell-off over the weekend, rallying back above $40,000 for the first time in a week.
After the doji pattern mentioned in the last session, the price bounced up sharply, now reaching the middle of the range. We continue to expect the price to rebound upwards. However, you should only hold existing buy orders, avoid adding new orders, because the RR ratio is not good, the initial goal will be around the upper border of the range.
The price was once again rejected around the 1.225 price area and this time with quite a strong force creating a notable bearish engulfing candlestick set on the daily. With these signs, you should close the previous probe buy orders, pay attention to the 1.215 price area, if it breaks this price zone, the triple top pattern will be confirmed and the short-term bullish structure will also be broken. breaks, then the price target might be around 1.205-1.210. Short-term reversal traders can consider selling orders when a signal appears.
The price is continuing to move as expected, approaching the support level of 1.410, which is also the neckline of the upper three top pattern, we keep our old judgment, if the 1.410 zone is broken, the reversal pattern will be confirmed. If the price is accepted and the price will likely continue to correct down, the target will then be around the psychological resistance level of 1.40, the bulls can look for opportunities at this 1.4 price area.
USDCAD has continued to go up as expected, our target is still around 1.22, whether the price will continue to recover or not, we need to wait for a signal from this price area, if the price approaches the target. should close a part of buy order and move SL to reduce risk.
AUDUSD is once again rejected by 0.78 zone, but this time it is a pretty clear bearish signal on daily, the possibility of price breaking the ascending channel line has increased significantly after this action, if it happens, you need to give up our buy strategy. Then, the support zone around 0.76 should be kept an eye on.