Dukascopy Bank Team
Dukascopy Bank SA
Contrary to prognoses, the upper trend-line of a four-month long descending channel could not constrain the yellow metal from breaking above the 1,230.00 level. It appears that the surge was mainly based on fundamentals, such as signs of the upcoming monetary policy tightening in Europe and unclear picture on global demand prospects from Chinese trade data. For now, the exchange rate has stuck between the weekly and monthly R1. An aggregate of technical indicators points out on continuation of the surge. In case these barriers are broken, the pair will face no obstacles on its way up until the weekly R2 at 1,339.62. In case of rebound, a combination of three moving averages together with the bottom edge of a four-week long ascending channel is expected to provide support.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
Recommended Content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.