Forex market reviews

The FOMC minutes provided USD with a short-lived boost. In addition to this, today we’ll be looking at two currency pairs that involve the euro, as well as one that involves 2 safe haven currencies.

On Wednesday the 20^th of February, trading on the EURUSD pair entered a sideways trend within a range of 1.1325 to 1.1370, revisiting the high from the 6^th of February in the process, which is at the top of this range. This trend continued into Thursday morning’s trading, where the pair dropped to 1.1330. All the while, the pair has remained within the confines of the newly-formed upwards channel that appeared at the end of last week. The immediate growth target remains at 1.1373, which marks the 50% Fibonacci level of the latest decline. However, the pair could test the lower boundary of the channel on the way to this target.

On Tuesday the 19^th of February, trading on the EURUSD pair started from 1.1310. It dropped to 1.1275 by midday before undergoing a sharp upwards reversal to reach our target of 1.1341. It then pressed on to hit 1.1355 before retreating to close the day below the newly broken resistance. The level to which the pair corrected (1.1341) is, first of all, the intraday high from the 13^th of February, and secondly, it coincides with the 38.2% Fibonacci level of the decline from 1.1514 to 1.1233.