Forex market reviews

We weren’t expecting much hawkishness from the FOMC yesterday, but the level of the dovishness really shook markets. According to the Fed, there won’t be any rate hikes this year (not so long ago we were expecting two) and only one in 2020. For markets, this was a clear sign to short the US dollar, which is giving us interesting trading signals on many pairs.

On Wednesday the 20^th of March, the bulls managed to close the day above 1.14. The highest point recorded during the day’s trading was 1.1448. The dollar collapsed during the US session following confirmation of the US Fed’s decision and the publication of the subsequent monetary policy statement.

Trading on the market has been pretty tough recently. Prices are not moving in trends, they often change direction, and we’re seeing a lot of false breakouts. However, false breakouts can also provide great trading opportunities and that is what we will focus on in this analysis.

On Tuesday the 19^th of March, trading on the euro closed up. If you ask me, it looks like the pair spent the day in a sideways trend. While the euro strengthened throughout the European session without any serious pullbacks, volatility was higher during the US session. Market participants are a bit shaky ahead of the upcoming Fed decision.