Aug 02 2021 0
USD had a bullish session late last week but not enough to save it from being one of the worst two weeks of price dropping this year. Although the volatility at the end of the week was not large, it was enough to generate noticeable signals.
Latest updates:
- PCE data - the Fed's preferred inflation gauge - came in below expectations (0.4% vs. 0.6%).
- US consumer sentiment was higher than expected (81.2 vs 80.8).
- Chairman Jerome Powell made it clear that raising interest rates is still a long way off and more economic progress is needed before the Fed begins to implement monetary stimulus measures.
- The euro area economy grew faster than expected in the second quarter, as positive surprises in France, Spain and especially Italy offset mild disappointment in Germany.
- Crude oil prices fell on renewed concerns about the strength of the US and Chinese economies.
USD/JPY
After the false breakout of the bear trap around 109.5, the price is continuing to recover. The short-term trend in general is still down, so it is preferable to wait for selling opportunities. However, no clear signal has appeared yet, so it is still not recommended for you to trade at the moment, need to observe more.
EUR/USD
After the false breakout of the bear trap around 109.5, the price is continuing to recover. The short-term trend in general is still down, so it is preferable to wait for selling opportunities. However, no clear signal has appeared yet, so it is still not recommended for you to trade at the moment, need to observe more.
GBP/USD
Selling pressure has returned around the 1.400 zone as expected, a bearish signal has also appeared (the price has broken the short-term uptrend line and created a rail pattern on the daily), so you can consider it. sell orders, more cautious can wait for the price to break below the 1.190 area clearly. The initial target for short positions this time is around 1.375 area.
USD/CAD
The price did not change much in the last session of the week, but it was enough to create the bullish trigger signal that we were waiting for, which is the inverted hammer pattern on H4. Although the uptrend line has been broken, the bullish structure is still maintained, and the price is retesting the long-term downtrend line, so we might still consider buying at this point. Initial target is around 1.260 zone.
AUD/USD
Our pending buy orders were not activated, the price failed to break above 0.74 and is falling sharply again from this zone. The falling channel line is still maintained in combination with the bearish engulfing reversal patterns on both daily and H4, you may consider selling orders to return to the main trend. The target for this drop is around 0.72.
