Jul 16 2021 0
There were not many new surprises in the next Fed chair's hearing. So there is no new development. We will just stick to our current trading strategies and adjust a little bit for the weekends.
- During the second hearing, Mr. Powell acknowledged that inflation was "uncomfortably" above the Fed's target, less confident about the economic outlook but refused to change policy.
- USD demand was underpinned by the spread of Delta Covid-19 variant in Asia, UK and also US (causing risk aversion).
- China's economy grew more slowly than expected in the second quarter, with GDP growing 7.9% from a year earlier, falling short of expectations of 8.1%. Rising commodity prices and the new Covid-19 outbreak affected the data.
- Saudi Arabia and the United Arab Emirates (UAE) are said to have resolved the dispute, along with the re-emergence of the disease causing oil prices to come under downward pressure.
The price has approached the 109.5 target area, you can consider risk reduction measures for previous sell orders, only add new positions when the price successfully breaks the 109.5 support, then the target Next target will be around 108.5.
The price is still consolidating in the 1.178-1.190 range, the price has not yet approached the upper boundary of the range but the selling pressure has become strong again as shown by the bearish engulfing pattern, which is a bearish engulfing candle. Positive sign for the sellers. Continue with the old tactic, can keep sell orders if available, add new positions in case price breaks down to the range, target 1.170.
GBPUSD once again retested the upper boundary of the range but was strongly rejected, unable to get out of this sideways price zone. We continue to patiently observe and wait for the signal to break the range to get the next clue about the price movement.
After the pair of bullish signals mentioned in the last session appeared around the area of 1.240 (with a railroad pattern on H4 and a pin bar on the daily), the price bounced up strongly, retesting the previous peak. that's around 1.260. The target for this rally will be around 1.270 area, however, for now, only existing buy orders should be maintained, moving SL and avoiding new orders for now.
The price has plummeted to the bottom of the range around 0.742, accompanied by the appearance of a bearish engulfing pattern, prepare for sell orders if this 0.742 zone is broken, initially targeting around 0.735.