Jul 29 2021 0
The Fed doesn't bring surprises, so it doesn't cause big fluctuations. However, new trading signals have appeared.
- The Fed did not surprise in its July meeting. The opportunity for the Fed to mention tapering will be rescheduled to the Jackson Hole Symposium at the end of August.
- The US has been more cautious in the fight against Covid-19. The US CDC has changed its guidance, advising vaccinated people to wear masks in certain indoor environments.
- Meanwhile, Britain is reportedly close to lifting quarantine restrictions on fully vaccinated travelers from both the EU and the US. The news sent shares of airlines and hotel operators in Europe soaring.
- Australia's Q2 CPI inflation of 3.8% y/y was no different from the forecast.
- Canada's 3.1% increase in inflation was not much different from expectations of 3.2%.
The price has bounced up from the 109.5 zone, however the upward momentum has not been maintained and the downward pressure has returned, pushing the price towards the 109.5 zone once again. This price behavior has generated new bearish signals, however, selling at this time is very risky, sell orders should only be considered if the 109.5 zone is broken, then the initial target will be around the zone. 109, followed by 108.6.
After the breakdown of the accumulation areas, the price has been forced to around the 1.175 support zone for a while, but the buyers are still defending very well around this area and creating significant buying pressure, along with bullish signals. Currently, the signals are supporting the possibility of a continuation of the recovery on EURUSD, the possibility that the price will retest the 1.195-1.200 zone. However, you should be careful with buying strategies because you are against the main trend, it is better to wait for a selling opportunity at the top.
The 1.390 zone has not been broken yet, however the selling pressure is quite weak, the bounce from this zone is quite shallow and ended quickly, so it is likely that the bulls will maintain control. The price may continue to go up and the next target is the 1.40 round number area. Sellers can ambush around this area.
The box has shown signs of being broken down, the price has approached the uptrend line. However, this is not the time for you to consider buying orders, so wait until the selling force shows exhaustion, the waiting price should be around 1.240-1.245.
The buyers still defend very well around the 0.733 area, the bullish signals have also appeared, however, buy orders should only be considered when the price has surpassed the 0.74 zone, then the initial target will be is around 0.75.