The started this week on a weaker note against other major currencies and Wednesday’s Federal Reserve policy assessment, which has held firm against hawkish expectations could even increase the pressure on the greenback, at least in the short-term. The Fed is expected to keep interest rates near zero and signal no change in their monthly bond purchases at Wednesday’s . Fed Chair Jerome Powell has primed market participants to fear no surprises, so could it thus be a non-event for traders?

Maybe, since policy makers refrained from providing further guidance on the conditions which would warrant a tapering of the central bank’s quantitative easing. However, speculative positioning could spur some volatility in USD crosses around the time of the Fed’s press conference.

On Thursday traders will watch US data which is forecast to show a 6 percent growth in the first quarter.
 
Let’s take a brief look at the technical picture:

EUR/USD

We currently see breaking above 1.2110, the descending trend line, while a break above 1.2120 could lead to further gains towards 1.2170 and 1.22. Bears, on the other side, may watch out for a break below 1.2030 that could result in a test of lower support levels at 1.1950 and 1.19. However, as long as the euro trades above 1.20, the short-term outlook remains bullish.

EUR/USD D1

EUR/USD D1

 

GBP/USD

The technical picture for has not fundamentally changed with the cable remaining in a 200-pip range between 1.40 and 1.38. The outlook remains however bullish – provided the pair holds above 1.3770. An upside break above 1.40 would open the door to further gains towards 1.41 and 1.4250.   

GBP/USD D1

GBP/USD D1

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

×