On the daily chart below, we can see that the price has eventually break above the downward trendline, but the buyers couldn’t extend the rally much as the sellers are leaning on the red long period moving average. The US Dollar is under pressure as the market expects the Fed to cut interest rates as soon as June and lead to big cuts before the end of the year.
We also have a tentatively positive risk sentiment as the central banks took emergency measures to calm the markets amid the troubles in the banking sector. It’s all about the sentiment lately and it can turn on a dime, so make sure to follow forexlive to never miss a beat.
On the 4 hour chart below, we can see that the buyers are struggling at the 0.67 handle as the sellers are fighting hard to defend that level. The buyers are nevertheless leaning on the red long period moving average, but it’s likely that the next direction will be decided by the FOMC decision tomorrow where the Fed is expected to deliver a dovish 25 bps hike.
In case the Fed decides to push back against the market pricing and keep with its tightening plan, we may see the greenback coming back strongly.
On the 1 hour chart below, we can see that the price got stuck in a box around the 0.67 handle. For the buyers, a break above the box would give more control and we should see a rally towards the next resistance at 0.6781. For the sellers, a break below the box would give more conviction, and may lead to a fall below the trendline to invalidate the change in trend and resume the original downtrend.
