Yesterday evening we found out that we should not expect any interest rate rises in 2020, which of course was a rather negative information for the American Dollar. For majority of the traders it was not a surprise. First of all, that was the recent trend for Dollar and what is more, the first reaction after the FOMC was not too volatile. Despite the limited response for the FOMC in terms of the pips, we still got few nice, significant trading signals.

We start with the main pair – EURUSD, where the technical situation finally looks really promising. Yesterday, the pair managed to break two important resistances. The first one was the neckline (blue) of the nice inverse head and shoulders pattern and the second one was the long-term down trendline (red). First step towards a major buy signal was made, now it is time for the buyers to hold above those lines and testing them as valid supports. Once the price will establish a strong position above those two, the buy signal will be created.

Second one is the USDMXN, which we also mentioned yesterday. We pointed out at a rising bearish pressure and the willingness for a breakout of the lower line of the symmetric triangle pattern. We did not have to wait a long time for that. FOMC driven movement managed to break the crucial support, giving us a major sell signal.

Last one is the NZDUSD, which finally reached the crucial long-term resistance (red), that we mentioned in one of our previous analysis. Back then, we anticipated that the price will get there and Kiwi did not disappoint us in this case. Red line is a great place to start a proper downswing but price action traders do not take that for granted. Price action traders wait for the situation to develop. Price closing a day above the red line will be a major buy signal and the price creating a bearish reversal pattern and closing a day below the Wednesday’s lows will be a signal to go short.

Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD trims intraday gains returns to mid-1.17

The EUR/USD pair retreated after flirting with the 1.1800 figure, as the market mood somehow turned sour. Focus on the next US fiscal relief package, coronavirus, and economic progress.


GBP/USD approaches 1.3000 once again

GBP/USD is easing towards weekly lows as dollar bulls are giving it another try. Brexit concerns and UK lockdowns in the eye of the storm.


XAU/USD bull-bear tug-of-war extends around $1975

XAU/USD sidelined heading into the European session. Downside limited by dollar weakness, coronavirus concerns. Focus remains on the USD dynamics and the United States/China updates.

Gold News

What you need to know about trading in August

The generally received wisdom is that summer is a quiet month for trading. Traders are on holiday and markets quieten down. That’s the expectation among many. However, the reality is that August can be one of the most volatile trading months of the year.

Read more

WTI: Bulls await API data to attack $41.00

WTI struggles to extend recovery moves from $40.74 beyond $41.00. Virus woes join OPEC output increase to combat drop in Russian oil production. US Factory Orders, API inventories will be the key.

Oil News

Forex Majors