Jul 13 2021 0
The market was relatively boring in the first session of the week. However that could end in today's session as US inflation data will be released.
- Market attention turned back to the US inflation outlook and Federal Reserve monetary policy amid easing fears of an economic recovery.
- The haven demand from last week is waning, attributed to China's move back to policy easing (by reducing the reserve requirement ratio) in an attempt to salvage a lost recovery.
- Central banks around the globe are being more cautious about the economic recovery process as the latest wave of Covid-19 is forcing many countries to apply new blockade orders.
- Crude oil prices slipped amid waning economic growth concerns at a time when some market indicators are starting to show worrying imbalances.
After the bullish breakout signals, what we are waiting for is yet to come. The transition area around 110.4 has not yet appeared a notable bearish pattern, the wedge pattern is not complete yet, wait patiently until the signal appears, avoid entering orders too soon!
The price has not been able to break through the 1.187-90 zone, which is also the neckline of an inverse head-and-shoulders reversal pattern. Recalling that this is a very important price zone, if it is broken, it is likely that the price will continue to move up and retest the psychological resistance of 1.200, then we will also temporarily abandon the selling strategy.
The downtrend has faltered at 1.190 area, however selling pressure around this area is quite weak, it was retested immediately after the bounce, hinting that it will be broken soon. If 1.190 is breached, the double bottom pattern will be confirmed, but the amplitude to the next important resistance zone (1.400) is not much, you should avoid bottom fishing.
The price recovered from 1.245 but fell back shortly after, this signals a warning that this is not the time to buy yet, our wait-and-buy strategy remains unchanged, however you can widen the waiting range to buy to the lower boundary of the rising channel, around 1.240. We only enter orders when there are reliable signals.
Not many new points on AUDUSD, price is still stuck around 0.750 area, not in a hurry to act at the moment, continue to wait for signals around resistance areas, especially around 0.760 and 0.735.