Jun 21 2021 0
USD is rising strongly and the whole market is under its influence. Every currency pair today has an obvious trend. However, correction can come anytime now, so we should not be hurry to enter any positions, We should wait for a really nice place to enter. Remember, you don't need to take that much risk.
- The dollar continued to move higher at the start of the European session on Friday, continuing to benefit from the surprise move on Wednesday by the FED to set an earlier interest rate hike schedule.
- The Bank of Japan also left the base rate unchanged as expected, and decided to extend by six months the deadline for programs to support companies affected by the pandemic.
- The National Bank of Switzerland, the Bank of Turkey and the Bank of Norway also kept their current policies, but the Norwegian central bank signaled it would raise interest rates in September as the country's economy recovers faster than most other countries.
- The surge in new infections convinced Prime Minister Boris Johnson to delay the reopening of the country's entire economy by a month, while retail sales fell unexpectedly by 1.4% in the period from April to May.
- The Bank of Australia is likely to follow the Fed in raising interest rates soon after strong jobs data. Australia's May jobs data showed 115k new jobs were created, far from the target of just 30k, while the unemployment rate plummeted to 5.1%, from 5.5% previously.
Despite the significant strengthening of the USD, USDJPY fluctuated at both ends of the week, which suggests that this correction may not be over anytime soon. Continue to wait, the target for this correction is around 109.6-109.8, we will wait for the price action around this zone to decide whether to return to the market with short-term bullish channel buy orders or not.
EURUSD is moving quite similar to gold, the price also completed the bearish pennant pattern and continued to go down, breaking through the 1.19 support zone. However, on the daily, there is no negative pattern for the sellers, only a bullish pin bar pattern on H4 but relatively small. In general, the possibility that the price will continue to fall on EURUSD is quite high, the next target will be 1.180, should not aim too far because the market is in heavy oversold conditions, an unexpected correction is likely.
The price has successfully broken the uptrend line and approached the 1.38 target, you should consider exiting or moving SL to reduce risk. After many consecutive plummeting sessions, the market is currently in an oversold state, there is a possibility of correction, new sell orders should only be considered after pullbacks.
The price has continued to go up, easily breaking the downtrend line and approaching the upper downtrend line. Our forex trading strategy is unchanged, continue to wait for corrections to appear to look for the next buying opportunity.
On H4, we are seeing a clear bearish trend, however, the market is in an oversold state, it is easy to correct, so we shouldn't continue to sell right now. It should be added that the last week's decline caused a big change on the daily frame, specifically, now the long-term uptrend channel has been broken and the giant head-and-shoulders pattern has also been confirmed. Thereby, the price could establish a medium-term downtrend towards the target area of 0.72-0.73. You may find selling opportunities after corrections.