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|Well||Current value||Daily change|
|EUR / USD||1.1453||0.68%|
|GBP / USD||1.2679||0.55%|
|USD / JPY||111.69||-0.69%|
|AUD / USD||.7135||0.40%|
|WTI Crude Oil||46.62||-1.21%|
|BTC / USD||3,984||14.08%|
Currency markets and traditional financial markets in general are trading very volatile after yesterday's decision by the Fed and the following press conference, as the much more aggressive position of the Central Bank's forecast caused wild swings in all asset classes.
The dollar rose higher as an initial reaction, but today the greenback is significantly lower, with the bond market not buying the Fed rate hike and Jerome Powell. The Fed president also told the press that the Fed is satisfied with its quantitative restraint efforts, and that the lack of flexibility has caused a sharp decline in stocks and risk currencies in late trading.
US Treasury yields have hardly moved on the hawkish surprise, and long-term yields have actually fallen to new monthly lows, with traders betting on a major Fed political error and a consequent hard landing in # 39; economy.
Today, the USD is falling, and since the Bank of Japan has also released a more aggressive message than expected, the Yen is among the major majors, while stocks and raw materials at risk are currently under pressure.
EUR / USD, 4 hour chart analysis
EUR / USD rose higher today after the initial decline after the Fed and the Euro exceeded 1.1440, the hand hit a new 6-week high against the Dollar. British retail sales came much higher than the consensus estimate and raised both the pound sterling and the euro ahead of the monetary meeting of the Bank of England.
Today's move could finally pave the way for a broader correction in the long-term downtrend underway in the most traded pair, but we still treat the rally as a shorting opportunity, with the 1.16 level which is an ideal target for transfer.
Nasdaq 100, analysis of the 4-hour chart
Taking the upper hand on the major equity markets, the Nasdaq joined the global downtrend yesterday, plunging below the February low and reaching its lowest level since mid-2017. Now that all major markets are in a downtrend market , our sell-the-rallies approach continues to be valid and the bulls should remain defensive towards equities, especially in the US where valuations are still sky-high.
USD / JPY, 4 hour chart analysis
The USD / JPY continued its bearish move following the central bank meetings, with the feeling of risk aversion and the slightly aggressive BOJ surprise that pushed the Yen higher. The pair is now very close to the October low near 111.50, and a move to 110 seems likely, since the BOJ did not use the recent global returns to move to a more accommodating position. Strong resistance is ahead near 112 and 112.50, and traders should sell rallies in the pair.
WTI Crude Oil, analysis of the 4-hour chart
WTI crude is still subject to strong selling pressures following the Fed's decision, with the contract seeking to form a minimum close to the support zone $ 46.6- $ 47. Given the weakness between risk assets, a peak under $ 45 is still at stake, with the broad downtrend clearly intact. That said, traders could enter long-term speculative positions with rigorous risk management, as a countertrend move is possible on illiquid holidays, with targets close to $ 50 and $ 53.50- $ 54.50.
Key economic events tomorrow
GBP / USD, 4 hour chart analysis
EUR / GBP, 4-hour chart analysis
AUD / USD, 4 hour chart analysis
EUR / JPY, 4 hour chart analysis
AUD / JPY, 4 hour chart analysis
GBP / JPY, 4 hour chart analysis
USD / CHF, 4 hour chart analysis
USD / CNH, 4 hour chart analysis
Gold futures, 4-hour chart analysis
Copper futures, analysis of the 4-hour chart
Major stock indices
Futures S & P 500, analysis of the 4-hour chart
DAX 30 Index CFD, analysis of the 4-hour chart
Nikkei 225 Futures, 4-hour chart analysis
Shanghai Composite Index CFD, 4 hour chart analysis
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