Free Profitable Forex Newsletter
Hey! This is Philip with this week's market update of the Free Profitable Forex Newsletter!
With the GBP and USD bull trends on pause after hitting a wall recently, there seems to be a lack of clear directional themes in the Fx market at the moment. Conversely, it appears USD pairs and many other Fx crosses have reached critical junctures on the charts, their reaction with which is likely to be unpredictable. Nonetheless, once these reactions play out and these key technical zones break, we should have more information about what will
happen next in the Forex market.
For example, EURUSD broke below 1.20 and 1.19 but did not manage to stay below 1.19 so far. A strong close above 1.20 is needed to reestablish some bullish dynamics. On the other hand, a break below 1.19 would see the bears taking charge. But, in the meantime, we are in no man’s land between 1.19 and 1.20 (see chart below), where it’s best to stay away from this market that could easily turn into a sideways but
potentially ugly volatile consolidation.
What to Expect in "New Market March"
This is just a fair warning we're handing out virtual roadmaps to finding the best bold market moves for March 2021...AND how to avoid getting blindsided by a crash.
High-risk Fx events next week; Staying on the sidelines for now
The intermarket relationships and the fundamentals are not giving a clear signal for Fx pairs either. The rising US Treasury yields are supporting the dollar broadly, but it is questionable for how long bond yields can keep going up before causing problems in the US financial system. This will be a hot subject that investors will expect the Fed and Chairman Powell to address at their meeting next Wednesday. Powell so far
tried to play down the rising yields, but eventually, the Fed may cave to the pressures of too high bond interest rates. It’s also worth noting that 10Y Treasury yields are at a major resistance area at 1.5%-1.6%. If the uptrend there reverses, the USD uptrend may go down with them too.
Given the context we are in markets, the Fed meeting next week could prove a pivotal market-moving event for the USD direction. Or, if they manage to play being neutral, then the breakouts or reversals in USD pairs may happen very gradually. It remains to be seen.
With that said, and with the super busy Fx calendar schedule for next week, we decide to stay away from taking trades at this time. We keep watching the charts for opportunities, and hopefully, the market will give us an attractive and clean trade setup next week.
Where to re-enter EURCHF long?
In the meantime, we are revisiting the EURCHF pair, where a few weeks ago, we scored a profitable trade, albeit only on the move from the support trendline up to the 1.0850 resistance.
The longer-term trend should remain bullish, but EURCHF may experience some headwinds in the near-term. Particularly, the slow vaccine roll-out in the EU, and consequently dovish for longer ECB, may keep the euro pressured broadly, including in EURCHF. This could mean that EURCHF consolidates for a long time before staging another rally higher.
By coincidence or not, the EURCHF charts seem to confirm this narrative as well.
Ultimately, dips back toward the 1.0850 - 1.09 area, if they come, are likely to prove as good buying opportunities. The trendlines on the chart above suggest this could occur sometime in May this year. Let’s see what happens.
Trade signals from the past week
TOTAL: 0 pips in the past week
TOTAL: +3900 pips profit since October 1, 2018
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Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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