Forex market reviews

As you probably know, Wednesday was pretty bad for USD, but by the end of the week, the greenback had managed to recover most of its losses. There is a pair where the drop from Wednesday wasn’t even visible – USDCAD. Wednesday’s candlestick is bearish, which while true, is not relevant from a technical point of view. Those from Thursday and Friday are, though, as they show us the reversal and the strength of the bulls.

Wow, what a week for USD! First, on Wednesday, traders were surprised by the ‘more than expected’ dovish approach from the FOMC, which provoked them to short the US dollar. Then, on Thursday and Friday, this pessimism towards the USD vanished almost entirely. Well, it depends on the pair, but on AUDUSD, for example, we are even lower than before the FOMC meeting.

Last week was pretty rough for the US Dollar. We witnessed an impressive decline after the FOMC meeting followed by a nice recovery on Friday. On most of the currency pairs on the market, USD is trying to recover all its losses from Wednesday. This is not the case on USDJPY, where yes, we do have a correction now, but it is pretty small and does not change the strong bearish sentiment here. USDJPY was on our radar on Thursday when our outlook was also bearish. That was a great call as the price declined sharply.

On Friday the 22^nd of March, trading on the euro closed down by 0.64% and finished the week with a 0.21% decline. On Thursday and Friday, the bulls erased all the gains they’d made during the first half of the week.

On Thursday the 21^st of March, trading on the US dollar index closed up. The DXY completely recovered Wednesday’s losses, which were incurred after the Fed’s interest rate decision and subsequent monetary policy statement along with Jerome Powell’s press conference.