Fed Intervened USD exchange rate (video)


04 May, AtoZForex, Amsterdam – Today we look into the Forex market from technical and fundamental perspectives as the USD exchange rate was intervened by the FED’s non-voting members.

On weekly time-frame, EURUSD spiked to its 8 months high at 1.1616 level and tumbled backwards as the Fed’s non-voting members commented that Fed’s June Rate hike is likely to take place.

EURUSD support zone

Despite yesterday’s major resistance level, the bullish market move is yet to be over as the prices remain above 1.1470 support zone. In addition to the 1.1470 support zone, 20 period (H4 time-frame) remains close to this level and sloping upwards, stochastic oscillator remains oversold and 100% Fibonacci retracement zone remains at the level of 1.1466 level too.

Overall looking into the pair’s current standpoint, in case of a disappointment from this Friday’s NFP figures the USD decline should be continuous, unless the 1.1466 level is broken below. Thus, the EURUSD bullish targets remain upwards at the level of 1.1828 level. 

In case of a strong support from this NFP figures, we could expect the EURUSD to break below 1.1466 level and once again trade at the vicinity of 1.1370-1.1280 levels.

USDJPY 17 months lows

Despite its 17 months lows, 105.60 level is expected to be a strong support level for USDJPY. From technical standpoint of view MACD is giving us a bullish divergence signals while 50 hour SMA is expected to become a dynamic support zone.

For bullish entries, we need to see the bullish candle for the day to close above 106.90 level (5 day SMA). Overall bullish USDJPY entries are recommendable with entries at or close to 106.40 level and SL at 106.15 level.

AUDUSD bearish price action confirmation

AUDUSD resistance of 0.7738 level has been acting as a possible reversal level, which gives warning signals to the bulls.

On Daily time frame, we can see a confirmed bearish candlestick as well as price action confirmation and fundamentals from down under as the RBA cut their interest rates unexpectedly.

However, 0.7466 level is the 61.8% Fibonacci retracement zone, which is a strong reversal/support zone too. Thus, AUDUSD must break below 0.7466 in order to confirm the bearish entries, otherwise we will be looking for a bullish AUDUSD correction or reversal wave initially right towards 0.7529 level.

Meanwhile my personal entry is as AUDUSD buy@ 0.7472, SL@ 0.7460, TP@ 0.7525

I have also covered Bullish Gold targets with SL and TP levels as well as my H&S formation for Crude oil in the video analysis.

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