Aug 09 2021 0
USD has caused strong changes in the last Friday session. This has caused major trading signals for our currency pairs.
- July US Nonfarm Payrolls was 943k vs. 870k estimate.
- The S&P and Dow closed at record highs. NASDAQ lagged behind strong jobs report.
- US Consumer Credit for June was $37.69 billion against an estimate of $23 billion.
- Fed's CEO Mr. Kaplan is calling for a gradual easing of stimulus.
- President Biden: The new Delta wave of Covid 19 will be very different to deal with.
- Canada Ivey PMI for July was 56.4 vs estimate of 67.3.
- The USD rose the most among major currencies after the US jobs report.
- Canada's July Labor Report showed 94k new jobs compared to 177k expectations.
The price increased strongly in the last session of the week, now broke the down channel. Our first sell zone around 110 did not appear, we continue to wait around 110.7, this is considered the last stop of the bears, because if it is broken, a higher high will appear and break the old bearish structure.
After many waiting sessions, the price has approached the target area at the bottom of the box, you should consider taking profit or moving the SL if you want to continue holding the order. The downward momentum is very good, if the price breaks the box, it can drop to the 1.170 zone, further will be 1.160, but it will not be reasonable if you enter new sell orders now, because the range is in the zone. The next resistance is quite narrow and there is no breakout signal yet.
Although there are signs of exiting the consolidation area (the box), but with the strong increase of USD in the last session, GBPUSD did not drop sharply. Personally, I no longer trust this deal as much as before. However, the order is still positive and there is no negative signal to give up this strategy, we can still hold the order, expecting the price to approach the 1.370 zone. We should start moving SL to reduce risk.
A weak Canadian labor data against the US has caused USDCAD to rebound, the previous session suggested that you exit long positions early, or move SL to EP, and this new volatility does not change us. that tactic. If you still have a previous buy order, you can still hold it and set a target around 1.265 but you should not enter a new order at this time.
As I warned you about the uptrend line breaking signal, this should not be considered a bullish signal because the selling pressure has strengthened very quickly after the break. Currently, the sellers have also accelerated, breaking the short-term ascending channel and creating a bearish engulfing set on the daily. We continue to maintain short positions, targeting 0.72.