The latest short-term technical analysis of the euro, sterling and yen
On Thursday (March 22) the European market quoted the views of analysts from Dukascopy Bank and analyzed and forecasted the trend of the euro (1.2464, 0.0017, 0.14%), the British pound (1.4207, -0.0021, -0.15%) and the yen. .
1. EUR/USD: Downside correction Support 1.2300
The exchange rate performance on both the Asian and Asian markets rose most of the time on Wednesday. During the day, the level of resistance around 55 hours and the 100-hour moving average in the area around 1.2300 was examined. Since the overnight declaration of Powell, the bulls have gained the upper hand and market volatility has intensified. Within one hour of the statement, the exchange rate rose by 48 points in the short-term and touched 1.2370 to set a new high for the week.
It is expected that this upward trend has subsided and the exchange rate may be revised downwards. However, due to the 55-hour and 100-hour moving average support at the 1.2300 level, even if the price falls, it will not fall below this support. The current resistance level looks to 1.2450
18:01 GMT, EUR/USD 1.2325
2. GBP/USD: Callback Down Target 1.4000
Earlier yesterday, the price stood firm at the 55-hour moving average and tested resistance at 1.4080. After overnight Powell's announcement, the exchange rate rose again and was supported. The price once went up to 1.4170 level resistance at the weekly level.
Today's technical indicators have begun to retrace from their previous highs, which means that in the short-term trading of the market, prices may have dropped. With the Bank of England's interest rate resolution statement today, it is expected that the price will continue the downward trend in this period, the target level is 1.4000, and the current resistance level looks towards 1.4250.
At 18:05 GMT, GBP/USD reports 1.4139
3. USD/JPY: Bearish Support 105.30
The exchange rate was immersed in short sentiment yesterday, owing to the news that there was an exchange of trade wars between the United States and China, as well as the content of the Powell Federal Reserve’s interest rate statement overnight. The price is initially measured at 200 hours; the 55-hour and 100-hour moving averages are located, and the 105.60 mark is further tested.
Today's exchange rate may still be affected by fundamental factors, especially Trump's news on tariffs. It is expected that even if the rebound rate rises above the 55- and 200-hour moving averages within a rebound day, the probability of a weekly resistance level at 106.30 is relatively small. The current support looks to 105.30.