May 06 2021 0
I know you are feeling down because of the low volatility in the market in the last couple of days. However, the vacation in those Asian countries is almost over and we can see a rise in volatility really soon. So let’s prepare for that by reading our chart analysis for today, May 6th, in this article.
- Yellen's attempts to reinterpret her interest rate comment have failed to change the market's perception that policymakers are eyeing the possibility of a rate hike.
- The market stirred up on the possibility of FED interest rate hike, and the sell-off of technology stocks weakened the risk sentiment, bringing benefits to the USD.
- Cryptocurrency blogs are speculating about the possibility that Musk, who triggered Dogecoin's spike this year through his backing move, will use his Saturday Night Live appearance to “ pump it again.
- FED New York: There is no sign that the program to buy bonds creates imbalance in the balance sheet of the Fed.
Prices also did not fluctuate much on the USD/JPY chart. However, a pennant pattern accumulation region has formed. The trigger point for trading on this pattern will be the zone 109.5. If the breakout is successful, you might consider buying. In case the pattern fails and the price corrects down, you can look for bullish signals around the medium to long-term uptrend line to buy.
After the emergence of a head and shoulders reversal, the downside momentum slowed down around the round number 1.20 area. However, the price action still shows the dominance of the sellers. Keep holding your current short positions and wait for the opportunity to replenish your position when the 1.20 zone is broken. Target initially around the 1.190 zone.
The GBP will have two key economic - political events that could have an impact today: the BoE policy meeting and the Scottish election. Technically, the price is still hovering in the range of 1.380-1.400. There hasn't been any more important signal yet, so we should not trade at this time. Pay attention to the price action at the two boundaries of the range as it is approached.
Selling pressure is still maintained on USD/CAD chart. With that said, this price action has increased the likelihood of a price breakout going downwards. RR ratio is better, so in case of breakout, you can consider selling orders to the zone 1.210-15.
There are no new signals on the AUDUSD chart. Prices continue to move in narrow ranges. Avoid trading this time. Consider trading only when the price breaks one of the two ranges of the range.