Despite the Federal Reserve increasing interest rates on Wednesday 16 March 2017, a less hawkish tone than anticipated has seen a significant sell-off in the US Dollar.
This has propelled EURUSD significantly higher, easing the intermediate-term bearish threat.
For GBPUSD, this has simply seen a shift from a more bearish threat to a positive tone within a broader range.
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A surge higher after the Fed meeting Wednesday through resistance at 1.0622 and to probe 1.0714, shifting risks higher Thursday.
- We see an upside bias for 1.0740 and 1.0755; break here aims for 1.0800.
- But below 1.0704 opens risk down to 1.0620.
However, the February break below 1.0577 confirmed an intermediate-term top and a bearish theme.
Short/Intermediate-term Outlook – Downside Risks:
- We see a negative tone with the bearish threat to 1.0339 and parity (1.0000).
What Changes This? Above 1.0829 signals a neutral tone, only shifting positive above 1.0874.
2 Hour EURUSD Chart
A surge higher after the Fed meeting Wednesday through resistances at 1.2210 and 1.2251 and to probe 1.2300, shifting risks higher Thursday.
- We see an upside bias for 1.2310 and 1.2328; break here aims for 1.2405.
- But below 1.2189 opens risk down to 1.2107.
Short/Intermediate-term Range Parameters: We see the range defined by 1.1982 and 1.2775.
Range Breakout Challenge
- Upside: Above 1.2775 aims higher for 1.3000, 1.3121 and 1.3455/3534 area.
- Downside: Below 1.1982 sees risk lower for 1.1943, 1.1880 and 1.1500.