Jul 30 2021 0
USD continued to lose momentum and had the 4th consecutive drop. However, the resistance around 91.5 is approaching.
- USD continued to drop sharply when the Fed was dovish combined with worse-than-expected economic data as followed:
- US GDP growth data for Q2 fell short of expectations (6.5% vs. 8.5%).
- The number of applications for unemployment benefits last week was also higher than expected (400k vs. 380k).
- While home sales fell sharply MoM (-1.9% vs. +8.3%).
- The Central Bank of Australia should immediately step up its bond-buying program from AUD5 billion per week to $6 billion, to support the economy from the impact of the country's lockdown. This is the opinion of Westpac chief economist Bill Evans.
There has been a signal to break out of the 109.5 zone, but the break force is quite weak and comes with a pullback immediately after creating a bullish pin bar candlestick set, suggesting the possibility of creating a bear trap around this zone, therefore. I do not encourage you to sell at the moment but should continue to observe more.
After the bullish signals, the rally on EURUSD is continuing as expected, now the price has approached the upper boundary of the big box. Our strategy remains the same, waiting to sell around the 1.195 - 1.200 area. Note that although there is a good recovery, you should not buy because the range to the next resistance area is not much, the RR ratio is not good and opposite to the main trend.
GBPUSD continues to recover as expected, the target area of 1.40 has been approached, this is the area where the sellers are likely to return, the bearish signal has also started appearing, consider exiting the buy orders if yes, prepare to enter short positions, best to wait and rely on daily bearish signal.
The price is moving as expected, the price is out of the box and is approaching the target of 1.240-1.245. This is the area where we will ambush to buy, but what is missing is reliable bullish signals, you continue to be patient, avoid entering orders too soon.
After the bullish signals, the recovering momentum is continuing, however the 0.740 resistance area has not been broken clearly, we need to observe more. When there is a solid signal that 0.740 is broken, buy orders can be considered, with targets at 0.75 and 0.76 respectively.