Richard Perry
Independent Analyst
An incredible consolidation has formed in recent days but there is still a slight bearish bias to proceedings which is again threatening to show through this morning. The past three completed sessions have all been very settled as the momentum indicators have plateaued. The resistance continues to be formed under $1.5000 and the 21 day moving average is a key indicator now in this consolidation as it remains a basis of resistance (currently falling around $1.4975). The intraday chart reflects this consolidation even more with the hourly moving averages flat and choppy trading in the past few days. If the support around $1.4800 is holding it becomes possible to play the classic RSI signals on the hourly chart, buying between 30/25 and selling between 65/70. A decisive breach of support at $1.4800 would re-engage the sellers and open a retest of $1.4685.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Fed statement language and QT strategy could drive USD action – LIVE
The US Federal Reserve is set to leave the policy rate unchanged after April 30 - May 1 policy meeting. Possible changes to the statement language and quantitative tightening strategy could impact the USD's valuation.
EUR/USD stays below 1.0700 as focus shifts to Fed policy decisions
EUR/USD stays in its daily range below 1.0700 following the mixed macroeconomic data releases from the US. Private sector rose more than expected in April, while the ISM Manufacturing PMI fell below 50. Fed will announce monetary policy decisions next.
GBP/USD holds steady below 1.2500 ahead of Fed
GBP/USD is off the lows but stays flatlined below 1.2500 on Wednesday. The US Dollar stays resilient against its rivals despite mixed data releases and doesn't allow the pair to stage a rebound ahead of the Fed's policy decisions.
Gold rebounds above $2,300 after US data, eyes on Fed policy decision
Gold gained traction and recovered above $2,300 in the American session on Wednesday. The benchmark 10-year US Treasury bond yield turned negative on the day after US data, helping XAU/USD push higher ahead of Fed policy announcements.
A new stage of Bitcoin's decline
Bitcoin's closing price on Tuesday became the lowest since late February, confirming the downward trend and falling under March and April support and the psychologically important round level.