Overnight forex price action following March FOMC

USD weakens, NZD best performer

Hours after what many headlines label as dovish Fed, this is what happened:

  1. USD lost against GBP, EUR, SGD, JPY, CAD and NZD.
  2. NZD gains most, is best performer followed by CAD.
  3. GBP remains worst performer, see this graph of relative performance YTD against major assets which we posted from Finviz on 10 March.
  4. GBPNZD and GBPCAD shorts are best performing crosses.
Overlay of forex majors hours after March '16 FOMC

Overlay of forex majors hours after March ’16 FOMC

 

Daily chart of GBPNZD

  1. Month- month down trend.
  2. Bearish continuation pattern.
  3. Just broken below 2014 high at 2.1055; this level should be kept in mind. Any failed break below suggests this former 52-week high can become a support.
GBPNZD daily chart

GBPNZD daily chart

 

Daily chart of NZDUSD

  1. Although NZD clearly did well last night after FOMC, swing traders may not find it an easy proposition to just long NZDUSD.
  2. The pair is capped by 6-month resistance that has to be overcome before any high move.
  3. At moment, the pair has support when we inspect price action these 2 weeks.
NZDUSD daily chart

NZDUSD daily chart

 

 

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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