Jul 21 2021 0
USD is continuing to go up after the breakout. However, you should note that the selling pressure above is quite clear, shown by the long upper candlesticks. Therefore, predictions about the uptrend of this curency should be cautious.
- Market sentiment has stabilized again after the first session of the week, the VIX (the market's fear index) also dropped sharply below the 20 mark.
- USD is trading around multi-month highs, continuing to benefit from increased safe-haven demand amid fears the rise of Covid-19 will hamper the global economic recovery.
- Although the BoJ has lowered its growth forecast and sharply increased its inflation forecast, ForexLive analyst Giles Coghlan thinks traders should take advantage of the opportunity to buy the USD after the pullbacks because in the longer term, the Fed will there are tightening moves before BoJ.
Our caution against the previously formed bullish signal was correct, there was a false break around 109.5, creating a bear trap and the price is rebounding, approaching the upper boundary of the descending channel. However, the bearish structure is still present, so our strategy is still to sell, but a clear signal is needed before entering new sell orders, be it around the channel line or when the price approaching the 110.5 resistance area.
The price continued to be compressed in the last session, now has reached the end of the accumulation zone and may break out today. We still maintain the old strategy, waiting for the signal to break the box and sell in the main downtrend, the initial target is 1.170, then 1.160. In case the price breaks the channel and goes up, continue to observe and wait for selling around 1.195-1.200.
The price has approached the 1.360 target area as expected, you should consider exiting the order or moving the SL to reduce the risk. The downward momentum is still very good, but still need to be cautious before corrections, only add orders in case the price retests the resistance area of 1.370-375 with a bearish signal.
After the price breaks through 1.270, there may be many traders who think that the uptrend will continue, however, it should be noted that the market is in a state of heavy overbought, in addition, this resistance area has a large amplitude, so It is difficult to determine if this breakout is real or fake. The most logical strategy at this point is to find an advantageous entry point that buys short-term in an uptrend. After the bearish signal noticed yesterday, the price continued to retreat, we are still in no hurry to act, patiently waiting for signals around 1.260 and 1.245, buy orders need to have clear signals before activation.
Price approached the 0.73 target after breaking out of the box. Consider exiting or moving SL to reduce the risk of previous sell orders, the next target is around 0.720-25, however, it should be noted that bullish candlestick signals have formed on both daily and H4, Do not enter a new sell order at this time.