2023-12-14 • Updated
The U.S. dollar, as gauged by the DXY index, experienced a significant drop of nearly 0.9% yesterday. This decline was driven by a substantial fall in U.S. Treasury rates following the Federal Reserve's unexpected dovish guidance. The Fed's departure from the anticipated outcome caught investors off guard, leading to a swift reversal in the market.
In its final meeting of the year, the U.S. central bank maintained current borrowing costs at multi-decade highs. However, a notable shift in strategy became evident as the Fed embraced a more lenient view of inflation and acknowledged discussions about potential rate cuts. The Summary of Economic Projections revealed a possible easing of 75 basis points in the coming year, aligning more closely with the market's outlook.
The Daily timeframe of EURUSD chart presents a sharp bullish movement as a result of the aftermath of the FOMC interest rate. Due to the spontaneous nature of the price action, it appears that a lot of retail traders will be aiming for a sell in order to catch the retracement of the move, in my view, however, price has not yet reached a reliable zone for a proper retracement to happen; hence, the bullish pressure continues.
Analyst’s Expectations:
Direction: Bullish
Target: 1.09570
Invalidation: 1.08705
In a similar manner to what we already analyzed on the EURUSD chart, the daily timeframe chart of GBPUSD experienced the same bullish spike in the price action. And at the moment, my sentiment remains bullish, since price has not yet reached a key level from whence a reversal could likely take place.
Analyst’s Expectations:
Direction: Bullish
Target: 1.27191
Invalidation: 1.26133
AUDUSD is one chart I’m personally watching closely. At the moment, I am convinced that the bullish momentum is yet to reach its destination, and as such, sentiment remains bullish. However, based on the reactions observed as soon as price reaches my key level, I am quite confident the market would make a reversal.
Analyst’s Expectations:
Direction: Bullish
Target: 0.67550
Invalidation: 0.66631
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more trade ideas and prompt market updates on the telegram channel.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
