fbpx

EURUSD Firm Rebound Post-FOMC; GBPUSD Bear Risks Eased


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.

Read more currency market analyses

EURUSD

A surge higher after the Fed meeting Wednesday through resistance at 1.0622 and to probe 1.0714, shifting risks higher Thursday.

For Today:

  • 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

eurusd chart

GBPUSD

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.

For Today:

  • 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.

4 Hour GBPUSD Chart

gbpusd chart

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.


Popular Brokers