The overall outlook for the Forex market appears to be bearish for the Euro and Pound, and cautious for the Australian Dollar, while the US Dollar is expected to gain strength. Here’s a summary of the key points:
Key Takeaways:
- EURUSD: Bears in control after Powell downplayed March rate cut. Sell if price breaks below 1.079 support.
- AUDUSD: Down after Fed decision. Look for sell opportunities at support levels (0.6538, 0.6510).
- JPY Carry Trades: Downward pressure due to lower US Treasury yields. Look for bearish setups in JPY crosses like AUD/JPY.
- GBPUSD: Mixed outlook. Dovish BoE and strong US data could push pair lower below 1.265.
Market Recap:
- Jerome Powell’s statement dampened hopes of a March Fed rate cut, causing the EURUSD to fall sharply.
- The Australian dollar also weakened due to the Fed’s decision and dovish RBA expectations.
- JPY carry trades face pressure as US Treasury yields continue to decline.
- The Bank of England kept rates unchanged but hinted at possible easing later in the year, impacting GBPUSD.
Trading Ideas:
- EURUSD: Sell short if price breaks below 1.079 support, with a stop loss above resistance and a take profit at 1.0719.
- AUDUSD: Sell short at support levels (0.6538, 0.6510), with stop losses above resistance and take profits based on risk tolerance.
- JPY Carry Trades: Identify specific JPY crosses showing bearish technical patterns and enter short trades accordingly.
- GBPUSD: Sell short if price breaks below 1.265 support, with a stop loss above resistance and a take profit based on risk tolerance.
- Bitcoin: Bullish potential with correction underway. Buy at 42149.77 with a target of 45000.00.
- Ripple: Potential upside move to 0.534. Buy at 0.487.
- Ethereum: Bearish continuation. Buy at 2266.86 with a target of 2439.53.
Commodities:
- Oil may correct in the short term but is expected to rebound. Testing support at 75.87 – 75.54 zone. Consider buying there with a target of January 29 high.
- The short-term gold downtrend continues with support at 2003 and resistance at 2047 and 2070. Sell if the price consolidates below yesterday’s low and forms a pattern.
Key factors to watch:
- US jobs report for January
- Fed and BoE monetary policy decisions
- Progress in the Ukraine war
- Global economic data
Categories: Market News
