2023-03-23 • Updated
As expected, the Federal Reserve hiked the key US interest rate by 25 basis points for the second straight time during its two-day meeting ending March 22. The unanimous decision of the FOMC came amid major central banks' commitment to fighting inflation while maintaining economic growth. The decision coincides with turmoil in banking stocks due to the Credit Suisse and SVB crises. What is the technical outlook to all these? Please continue reading below.
The US Dollar (DXY) on the Daily timeframe has arrived at the Demand zone with an initial reaction away from the zone. However, I expect that price will return to the area before we see the major bullish impulse play out; the reason for this is the obvious gap created by the drop. Based on this analysis, a stronger Dollar would mean a bearish move on most major pairs.
Analysts’ Expectations:
Direction: Bullish
Target: 103.870
Invalidation: 100.700
EURUSD is my favorite setup from today's analysis. Here we see the price reacting to the 76% Fibonacci retracement level and a supply zone overlapping the area. There is also a trendline pivot, which acts as resistance in this case. Despite the Moving Average alignments, I believe this setup will do quite well based on the correlation with the US Dollar's analysis.
Analysts’ Expectations:
Direction: Bearish
Target: 1.07495
Invalidation: 1.10300
GBPUSD is currently trading within a channel and has reached the resistance trendline of the channel. The same area also has the confluences from the 88% Fibonacci retracement zone and the rally-base-drop supply zone. 1.21650 is my initial target for this trade.
Analysts’ Expectations:
Direction: Bearish
Target: 1.21650
Invalidation: 1.24000
Similar to EURUSD, we're seeing a reaction of price to the 88% of the Fibonacci retracement and a retest of trendline resistance. There is also a note-worthy rally-base-drop supply zone and a gap around the $1873 area. These are my confluences in favor of a bearish trade from this area.
Analysts’ Expectations:
Direction: Bearish
Target: $1873
Invalidation: $2061
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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