GBP/USD retraced more than 78.6% Fibonacci of the 2019 advance. Last week was the worst for the pair since the Brexit referendum.
Daily Market Analysis
CAD/JPY recovered last week to the 78.00 area (38.2% Fibonacci of the February-March decline), but then turned down again getting back below the 50-period MA on the H4.
After testing the lowest levels since 2016 in the 101.18 area earlier this week, USD/JPY turned up and returned above 105.00.
After opening the week with a gap up, EUR/CAD formed two inside bars on the D1. This is the sign that the advance has run out of steam.
The decline of USD/CHF from February highs to March lows was epic. The pair then reached support at 0.9185 (2018 low) and turned up.
After forming a diamond-like top below 1,700, XAU/USD went consolidating. Pay attention to the support and resistance levels!
USD loses value against the EUR. How much of an issue is that?
EUR/USD has reached December high at 1.1240 and is actively testing levels above it. The picture at the chart changes very fast.
If you don’t want to deal with the violent moves of the USD these days, consider crosses, for example, EUR/JPY.
Just like EUR/AUD, EUR/CAD has soared during the period since February 20. There’s a chance that the pair will follow the path of EUR/AUD after the BOC meeting.
As the market expected, the Reserve Bank of Australia has cut its interest rate from 0.75% to 0.5%. AUD/USD rallied on the news as the decision had been priced in.
AUD/JPY is in the downtrend since the start of the year. It was capped on the upside by all the three important moving averages on the D1.