Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Dollar Under Pressure Post-FOMC, Focus Turns To U.S. GDP

Published 29/04/2021, 10:32
Updated 14/05/2017, 11:45

The Federal Reserve offered, as expected, no fresh cues and said it will continue with asset purchases. The US Dollar started to weaken ahead of the Fed’s statement and accelerated its slide at the central bank’s virtual press conference. However, worries about earlier-than-expected tightening appeared to ease, which could be an early signal of the Fed’s hawkish shift.
 
Technically, we saw both FX pairs rising on the back of a weakening US dollar which was to be expected since there were no surprises from the Fed.

GBP/USD

As long as the pair holds above 1.38, the outlook remains bullish with the focus on the 1.40-resistance. In case of a bullish breakout above 1.4020 we expect further gains towards 1.4150 and 1.42. Based on the current uptrend channel a higher support is now seen at 1.39.    
  GBP/USD D1

EUR/USD

The euro was able to stabilize above 1.21 and as long as this crucial barrier holds, we see chances of further gains towards 1.22. But be careful: Given the straight-lined uptrend, the pair is in overbought territory and buyers may seek to take profits around 1.2180, so be aware of corrections. If the euro falls back below 1.2050, we could see a deeper correction towards 1.20.
EUR/USD D1 

DAX

The index’s price chart looks boring since there were no major fluctuations. Consequently, the current sideways range between 15400 and 15000 remains intact. A break above 15370 could open the door for a leg up towards 15450 and possibly even a renewed test of the high at 15500. Below 15140, we could see a test of the 15000-support.

As for our daily entries, we went short this morning at 15280 and took profit at 15240.  
 DAX H4

Traders will watch the US GDP figures today at 12:30 UTC, that could strengthen the greenback in the short-term, provided the reading will not fail to impress.

 
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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.