Aug 05 2021 0
USD fluctuated strongly in the last session and caused many notable signals to appear on currency pairs.
- The ADP labor data was significantly lower than expected (330K vs. 695K).
- While US service ISM data was strong and better than expected (64.1 vs. 60.5).
- The NZD rallied for a second day in a row, after unemployment in the country eased, raising expectations that rate hikes could begin within weeks.
- Euro zone business activity picked up pace last month, expanding at its fastest pace in 15 years as the lifting of restrictions and increased vaccination rates prompted a rapid recovery in the services sector.
- RIT Capital Partners, an investment fund founded by Jacob Rothschild, is co-leading a funding round for crypto investment platform Aspen Digital to fund the creation of an online platform that will provide investors with Rich Investments a single portal to manage crypto investments.
Price fell in the first half of the session but then recovered strongly and could not approach the price target of 108.5 that we set, the risk reduction recommendation around 109 area is correct. With the current bullish pressure, shown by the bullish candlestick patterns and the bear trap at 109, we can expect the rally to continue although the main trend is still down. Need to pay attention to the two price zones 110 and 110.5, we will sell again when there is a signal.
Volatility on EURUSD also increased in the last session and there have been additional bearish signals including a rail pattern on H4 and a bearish pin bar on the daily. We'll continue to maintain short positions, the target is still around the bottom of the box.
There has been no major move on GBPUSD yet but overall the price behavior is not to the detriment of our current selling strategy. You continue to maintain your existing sell orders, if you are more careful, wait until the price breaks out of the box before entering, the target is still around 1.375.
USDCAD hasn't changed much in the last session, our buy orders are still positive, already ½ of the way to the target area of 1.265. However, when the USD bounced strongly in the last session, the price behavior of USDCAD can now be considered to be unfavorable for us. Although you have not changed your tactics, you should prepare for a bad situation, remember to move the SL of open orders.
Although the downtrend line has been officially broken, you should not consider this as a bullish signal to consider buying, because selling overwhelmingly returned right after the break, creating a bearish signal. prices on both H4 and daily. We continue to maintain short positions, keeping our target around 0.72 area.