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:
- USD lost against GBP, EUR, SGD, JPY, CAD and NZD.
- NZD gains most, is best performer followed by CAD.
- GBP remains worst performer, see this graph of relative performance YTD against major assets which we posted from Finviz on 10 March.
- GBPNZD and GBPCAD shorts are best performing crosses.
Daily chart of GBPNZD
- Month- month down trend.
- Bearish continuation pattern.
- 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.
Daily chart of NZDUSD
- Although NZD clearly did well last night after FOMC, swing traders may not find it an easy proposition to just long NZDUSD.
- The pair is capped by 6-month resistance that has to be overcome before any high move.
- At moment, the pair has support when we inspect price action these 2 weeks.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
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