In this article, we have covered the highlights of global market news about the EUR/USD, USD/JPY, USD/CHF and NZD/USD.
EUR/USD Price Analysis: Breaks a two-day winning run as bears close in. Support for 1.0800 keys
During the first hour of Wednesday’s European session, intraday sellers are welcomed, and the EUR/USD falls to 1.0830. The Euro pair records its first daily loss in three days.
After a short run-up, the central currency pair’s recent dip pulls it back below the 61.8% Fibonacci retracement mark of its drop from February to March, which teases sellers. The approaching bear cross on the MACD indicator strengthens the tilt towards the downside.
Nevertheless, it should be highlighted that the confluence of the 21-SMA horizontal line from late January and the rising trend line from two weeks ago highlights the 1.0800 as a difficult level for the EUR/USD bears to overcome.
If the price of the Euro pair falls below 1.0800, the mid-month high at 1.0760 and last Friday’s high near 1.0715 may serve as enticements for bearish.
However, the recent high at 1.0850 must be broken to the upside before the EUR/USD buyers return to the market.
USD/JPY is targeting 132.00 as the BoJ prefers a dovish stance, while US PCE Inflation is in focus.
In the early hours of the European session, the USD/JPY pair is trading close to its weekly high at 131.75. The asset is anticipated to continue upward towards 132,000 as fresh concerns about the Bank of Japan’s continued adoption of ultra-loose monetary policy are there (BoJ).
When a new BoJ leadership took office a few months ago, the Japanese Yen attracted bullish wagers on the anticipation that the BoJ would abandon its decade-long expansionary strategy. However, expectations of a change in the policy stance have diminished since BoJ Governor Kazuo Ueda has not made any aggressive comments since assuming the position of the highest-ranking official in the central bank.
Meanwhile, ex-BoJ Governor Haruhiko Kuroda’s fervently dovetailing comments have fanned the flames. It is premature to contemplate ending the loose monetary policy, according to ex-BoJ Kuroda. More time is required to attain the pricing objective steadily and consistently, and it continues. Because the sustained inflation objective has yet to be reached, the dovish policy is necessary.
In addition, the attraction of the Japanese Yen as a haven currency has diminished due to waning worries about a possible financial catastrophe in the United States. The US government is working to assure investors and people that their savings are secure.
USD/CHF maintains modest advances over 0.9200 ahead of Swiss ZEW data and the SNB Quarterly Report.
The USD/CHF remains buyers in control amid Wednesday’s early slow markets. Despite this, the Swiss currency pair increased the most the day before, showing the most recent inactivity over 0.9200, up 0.10% at 0.9208 at the time of publication.
The most recent setbacks to the initial euphoria, primarily on the geopolitical front and encouraging US Treasury bond rates, have contributed to the US Dollar’s late-Tuesday recovery from the weekly low.
Among them are stories implying that the US has blacklisted Chinese businesses and Beijing’s opposition to a meeting between the presidents of Taiwan and the White House. According to the 10-year and 5-year breakeven inflation rates from the St. Louis Federal Reserve, the two-week high optimistic US inflation forecasts may also challenge the risk-on stance (FRED).
Yet, the risk profile remains favorable due to the Swiss National Bank’s (SNB) capacity to control the Credit Suisse turbulence and optimism around the Silicon Valley Bank (SVB) acquisition.
NZD/USD Price Analysis: Bulls flex muscles to overcome critical resistance levels below 0.6300
Early on Wednesday morning in Europe, NZD/USD registers modest gains around 0.6260 as bulls take a break from the previous day’s run-up, which was the largest in over a week. In doing so, the Kiwi pair defends a two-day run-up despite losing upward momentum below critical resistances.
To maintain buyers, however, the continuous U-turn of the quotation from a three-week-old rising support line is combined with bullish MACD indications. The stable RSI gives the upward potential further support (14).
Nevertheless, the NZD/USD pair’s immediate upside is constrained by the downward-sloping resistance line from mid-February, which is close to 0.6280 at the latest.
The Kiwi pair buyers then face a battle around a confluence of the 50-DMA and 100-DMA around 0.6285-95.
It’s important to remember that the round number 0.6300 serves as an additional filter to the north and that if it is broken, it will not hesitate to test the mid-February high at 0.6390.
Pullback movements, however, need confirmation from the aforementioned immediate support line, which is now at 0.6195 as of the time of the press.
Several lows set since late November 2022, around 0.6090-80, may catch the market’s attention if NZD/USD continues harmful beyond 0.6195.Top 4 Latest Forex News and Market Analysis for 28 March, 2023.
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