Jul 08 2021 0
The FOMC did not come as a big surprise to the market. USD is still recovering and is currently approaching the highs of last week. Let's wait and see if there is a breakout!
- Minutes from the June FOMC meeting showed that Fed officials were unwilling to announce a timeline for scaling back asset purchases as the uncertain economic outlook remained high.
- EUR continued to struggle as economic research institute ZEW said investor sentiment in Germany, the eurozone's largest economy, fell sharply in July although it remained very high.
- The bond market continued to send ominous signals as the 10-year yield dropped to 1.333% - the lowest level since February 24 - as US bonds continued to be offered to buy in the past session.
A doji pattern has appeared on the daily around the lower boundary of the rising channel, which means that the downward momentum has slowed down, but this is still a relatively weak signal, you should only enter probe orders. Wait until the price breaks the high of the doji pattern or when the price generates a more reliable bullish signal before adding enough positions.
The bullish signal created at the end of last week was officially invalidated after the price broke the bottom of 1.180, this is also the signal to trigger sell orders in the downtrend, you can consider entering orders, The target will be around the 1.170 zone. However, it should be noted that the market is still in an oversold state, you need to install SL carefully in case the price rebounds unexpectedly.
As mentioned, trend breakout trades on GBPUSD currently have less potential than EURUSD, and given the fact that GBPUSD's downside momentum has stalled, has not been able to approach previous bottoms around the 1.375 region. In the new session, we continue to observe the two ranges of 1.375 and 1.390, we should not rush to act at the moment. In case the price successfully breaks through 1.375 with a reliable signal, then sell orders can be considered in line with the trend.
The price has retested the previously broken downtrend line and then recovered and surpassed the important peak around 1.248, the current price behavior is supportive for the possibility of an upward continuation, you can consider the buy order, initial target will be around 1.260.
The price is continuing to go down as expected, you continue to maintain short-term sell orders, keeping the initial target around 0.740, further will be 0.735, when the price approaches the target, we can consider risk reduction measures.