The Forex Zone – In the wake of a dovish Fed

Intermediate

In today’s Forex Zone we take a look at the day trade prospects for the Major Forex currency pairs in a week in which Federal Reserve Chairman Jerome Powell reinforced the market view that the Fed were on a more dovish path. Checkout the key levels to watch and the directional biases here for the Major Forex currency pairs; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY.

EURUSD: Risks stay back higher

A setback Thursday from just below our 1.1295 resistance (from 1.1286), but holding above 1.1241 support (at 1.1244), to sustain a positive tone from Wednesday’s surge up above 1.1234 and 1.1264 resistances and the July down trend line, to keep risks higher for Friday.

For Today:

  • We see an upside bias for 1.1286/95; break here aims for 1.1322/25, maybe 1.1360.
  • But below 1.1244/41 opens risk down to 1.1211, then maybe 1.1192 and even key 1.1180.
EURUSD Chart

GBPUSD: Still an upside bias

A dip Thursday but holding above 1.2483 support to sustain a positive tone from Wednesday’s solid rebound to reverse the July down trend line, that eased bear forces for a very small base pattern, to keep the bias higher into Friday.

For Today:                                               

  • We see an upside bias for 1.2581/88; break here aims for 1.2617.
  • But below 1.2483 opens risk down to 1.2438/37, possibly 1.2403/01.
GBPUSD Chart

USDCAD: Bias stays to the downside 

A bounce Thursday from just above the cycle low at 1.3031 (from 1.3036), but still capped by initial resistance at 13101 and then a selloff through the 1.3036/31 supports to a new cycle low at 1.3028 overnight, to reinforce the negative bias from Wednesday’s plunge from within our firm 1.3137/45 resistance area, to leave risks back lower for Friday.

For Today:

  • We see a downside bias for 1.3028; break here aims for 1.3000 and maybe towards 1.2961.
  • But above 1.3101 opens risk up to 1.3137/45.
USDCAD Chart

AUDUSD: Risks stay higher

A firm advance Thursday through 6994 resistance to build on Wednesday’s surge above .6938 and the accelerated down trend line from early July, further rejecting Tuesday’s plunge to reinforce a base and upside forces to keep the bias higher Friday.

For Today:                                                         

  • We see an upside bias for .6999; break here aims for .7017, maybe towards the key peak at .7048.
  • But below .6929 opens risk down to for key .6901.
AUDUSD Chart

NZDUSD: Upside risks to key .6729 for a bullish shift

A push to the topside on Thursday above .6657, to build on Wednesday’s strong rebound after an initial plunge, to push above the July down trend line, to keep a positive tone for Friday.

For Today:

  • We see an upside bias for .6689/94; break here aims for key targets at .6720/29.
  • But below .6638 opens risk down to .6590.
NZDUSD Chart

USDJPY: Downside risks intact

A selloff then rebound Thursday but capped by initial 108.73 resistance and whilst below here we still see negative forces Wednesday’s selloff for a small top pattern below the June-July up trend line, to keep risks lower into Friday.

For Today:

  • We see a downside bias for 108.11; break here aims for 107.83, maybe key 107.50.
  • But above 108.73 opens risk up to 108.99.
USDJPY Chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Euro recovery theme intact, despite dip

A Euro dip versus the US Dollar to start the week, after EURUSD surged back higher last week.EURUSD has recouped much of the loss sustained through mid-March, during the panic buying of US Dollars.Despite this week’s early dip, we see this as corrective for now and see an upside theme resuming today, aiming EURUSD back higher. EURUSD day trade outlook: Looking for a rebound after… Continued

Corrective moves for stocks and the US Dollar

Macroeconomic/ geopolitical developments The COVID-19 coronavirus continues to spread globally, with the current epicentre still in Europe, but quickly shifting to the US. The British Prime Minister, Boris Johnson and Heath Secretary Matt Hancock have both tested positive for coronavirus (though symptoms are understood to be mild).The surge in cases in New York and the tri-state area of New York, New Jersey and Connecticut has… Continued

Dollar reverses, breaks key support (DXY)

Euro breaks up (EURUSD)Pound hits major resistance (GBPUSD)Dollar-Yen refuses to rise with equities (USDJPY) Continued

EURUSD recovery with negative US Dollar correction

The surging US Dollar strength through mid-March has continued to reverse this week and over the past 24 hours.This has reflected an easing of global funding and credit concerns, as global central banks, particularly the Federal Reserve in the US, have acted to provide global liquidity for US Dollars.The corrective weakening of the US Dollar has been seen across most major currencies (except against the… Continued

GBPUSD bounce as US Dollar strength recedes

The aggressive US Dollar strength of the past 1-2 weeks has begun to recede this week.This has been as equity averages have stabilised globally and begun to rebound, alongside commodity prices, whilst credit concerns have been eased by global central bank actions.This has seen a more negative, correction, a weakening of the US Dollar across most major currencies (barring the Japanese Yen).Here we focus on… Continued

Forex Brokers in your location