EUR/USD: USD smashed after FED


EUR/USD Current price: 1.0810

View Live Chart for the EUR/USD

e
The dollar took a dive across the board ahead of the FOMC Meeting outcome, and fell even lower afterwards, despite the US Federal Reserve decided to remove the word "patient" from their statement. The US FED, basically changed the wording once again, adding that they want to be "reasonably confident" on inflation before making a move, but took no other commitment. They also said that they have not yet decided the timing of the initial increase, but they have cleared that a rate hike will be probably discussed in the June meeting. The Central Bank also lowered its outlook for GDP and employment for this year and the next, sounding less optimistic about the economy than expected. The dollar sell-off took the EUR/USD up to a fresh 6-day high above the 1.0800 level, from where the pair slowly retraced during Mrs. Yellen speech, before resuming its advance. 

Technically, the short term picture remains bullish, as the 1 hour chart shows that the price advanced well above the 100 and the 200 SMAs, whilst the technical indicators head strongly higher, despite being in overbought territory. In the 4 hours chart the price extended further above its 20 SMA, whilst indicators maintain their sharp bullish slopes well into positive territory, suggesting additional gains during the Asian session, particularly if the price holds above the 1.0800 mark.

Support levels: 1.0800 1.0750 1.0710 

Resistance levels: 1.0835 1.0880 1.0940

EUR/JPY Current price: 130.10

View Live Chart for the EUR/JPY
ey
The US 10Y yields fell sharply after the news down almost over 3.5% on the day and back below the 2.0% level, supporting some Yen strength yet at the same time, equities in the US shy rocketed, limiting the Japanese currency gains. The EUR/JPY pair advanced above the 130.00 level, and struggles to sustain gains above it, holding nearby and with the short term technical picture favoring the upside. The 1 hour chart shows that the price broke above its 100 and 200 SMAs, for the first time since late February, whilst the technical indicators in the mentioned time frame head higher in overbought territory. If the price holds above the 200 SMA, now around 129.20, the outlook will be quite constructive for the upcoming days, eyeing the 132.00 area. In the 4 hours chart the technical indicators also head strongly up above their mid-lines, supporting the shorter term view. 

Support levels: 129.55 129.20 128.70

Resistance levels: 130.20 130.80 131.40

GBP/USD Current price: 1.4924

View Live Chart for the GBP/USD
g
The British Pound sunk early Europe, falling down to 1.4634 against the greenback, level not seen since mid 2010. The catalysts behind the fall were a static BOE, leaving its monetary policy unchanged, will all of the nine voting members agreeing on that, and weak wages growth according to the latest employment data. The pair however, recovered in the American session, soaring near the 1.4900 level with the FOMC.  After a limited pullback, the pair resumes its advance, advancing above the mentioned high and with scope to continue advancing according to intraday charts. The 1 hour one, shows that the price has recovered above its 20 SMA, now gaining bullish slope, whilst the technical indicators head strongly north above in overbought territory. In the 4 hours chart the technical readings are also biased higher, with the RSI indicator strongly up near 61 after reaching oversold levels earlier in the day. Additional advances above the 1.4960 level should see the pair testing the 1.5000 critical resistance, with some selling interest expected to halt the advance there. 


Support levels:  1.4880 1.4840 1.4800


Resistance levels:  1.4960 1.5000 1.5050


USD/JPY Current price: 120.38

View Live Chart for the USD/JPY
y
The USD/JPY pair fell down to 120.25, accelerating its decline after failing to regain the 121.00 level mid American afternoon. The sharp fall has left the pair vulnerable towards the downside, as the 1 hour chart shows that the price extended well below its 100 and 200 SMAs, whilst the technical indicators maintain their bearish strength, despite in oversold territory. In the 4 hours chart the price is finding some short term support around the current level in a bullish 100 SMA, albeit the technical indicators head south well below their mid-lines, favoring a downward continuation particularly on a break below the critical 120.00 mark. 

Support levels:  120.00 119.65 119.10 

Resistance levels: 120.65 121.05 121.50 


AUD/USD Current price: 0.7780

View Live Chart for the AUD/USD

a

The AUD/USD surged up to 0.7800 on the back of FOMC contradictory message, pulling back from a fresh 2-week high, but maintaining the short term positive tone. The 1 hour chart shows that the price overextended well above a now bullish 20 SMA, whilst the technical indicators continue to head higher in extreme overbought territory. In the 4 hours chart the technical indicators head sharply up near overbought levels, whilst the 200 EMA is limiting the upside around the 0.7790 price zone. The rally will likely extend during the upcoming hours, particularly if the price breaks above the 0.7800 level, but in the long term picture, Aussie gains will remain limited, as whilst the FED may delay a couple of months its rate hike, the RBA by opposition has made it clear that a rate cut is under way. 

Support levels: 0.7590 0.7555 0.7520

Resistance levels: 0.7625 0.7660 0.7690 

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold reaches to all-time highs near $2,230, US PCE eyed

Gold reaches to all-time highs near $2,230, US PCE eyed

Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures