May 05 2021 0
USD is making a return. Gold price drops to the lowest. CAD gets serious help from the central bank. AUD keeps getting weaker. This sure will be a busy day for forex traders all over the world. Learn how you should trade in this article.
Latest updates:
- USD rebounded in Tuesday session, regaining losses on Monday.
- Despite the economy likely to grow at its fastest pace in decades this year, New York Fed President John Williams said on Monday that current financial conditions are not close to that. The Fed will consider withdrawing its support.
- Gold prices turned down from their highs in more than two months as the dollar strengthened and investors looked at FED Chairman Jerome Powell's optimistic comments on the economy.
- The Bank of Canada (BoC) may start to raise interest rates before the US Central Bank (FED), which essentially helps the CAD rise, but previous tightening cycles suggest that this increase may not last long.
- A weak AUD due to the Reserve Bank of Australia (RBA) drastically upgraded its forecasts for the local economy but still predicts not to tighten its super-loose policy until at least 2024.
- Cryptocurrency Ether reached a new record high of nearly $3,500 as speculators drove the crypto market.
USD/JPY
There was no significant change on the USD/JPY chart. Price still fluctuated close to the resistance area of 109.5. We will continue the strategy to buy at buying zones including: the resistance at 109.5 or when the price retests the mid-long-term uptrend channel with a bullish signal.
EUR/USD
Prices fell back as expected. The Head and Shoulders reversal pattern is also being confirmed. Maintain current sell orders. In the event the price breaks through the 1.20 level, you can add positions. Aim initially around the 1.190 zone.
GBP/USD
The price continues to fluctuate in the range of 1.380 - 1.400. No more important signals have appeared in the last session. It is also difficult for prices to get out of the range before the BoE policy meeting ends on Thursday, so avoid trading for now.
USD/CAD
Prices rebounded around the first half of the session, but the sellers of USD/CAD returned strongly by the end of the session and is pushing prices back down to the 1.225 zone. This price action has increased the possibility of a downside breakout. The resistance zone based on the lower boundary of the downside channel has also extended downwards. The RR rate has been better, so in the event of a breakout, you can consider trading.
AUD/USD
The price is still moving in the 0.77 - 0.78 range. Current conditions are unfavorable, so avoid trading this time. Trade should only be considered when the price breaks either of the range.
