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Currency Pairs

GBP/USD

• GBP/USD falls to one-month lows on firmer dollar.
• Cable falls to its lowest level since December 28th as the dollar strengthens following the Fed’s decision.
• Cable has now broken through support between 1.3436-55, resulting in new monthly lows.
• Keep the pair below the support range of 1.3436-55 (this week’s lows to the 50.0 retracement level) and sellers will hold the next move down in the pair. That will be the key thing to keep an eye on as the day comes to a conclusion. If this is the case, the 1.3400 level may provide some little support moving ahead, but the decline may continue to the 38.2 retracement level at 1.3385 next.
• If it loses way, cable will be on a steep slope all the way back to 1.3200. It’s all about the dollar right now, and with risk looking jittery and markets having to consider a potentially more hawkish tilt ahead of March, it’s difficult to bet against it, especially when the charts are also on its side.

AUD/USD

·      The AUD/USD is vulnerable to a decline towards 0.7000 in the near future.

·      The pair is currently down 0.5 percent on the day, trading at 0.7070, its lowest level since 7 December.

·      It may not appear to be much, but sellers are currently aiming to keep a break below 0.7100 and the support level of 0.7082-00. As a result, because there is little else standing in the way, this will serve to provide a solid foundation for a further negative push towards 0.7000.

NZD/USD

• The downside pressure on the NZD/USD has increased as the Fed has become more hawkish.
• The NZD/USD is down 0.7 percent to 0.6600, but the losses might be far from done.
• The pair fell below the critical 0.6700 zone earlier this week, as well as past the 61.8 retracement level @ 0.6702, and sellers have since built on the bearish breach.
• The Fed’s more aggressive tone yesterday compounded the slide, with the pair currently down 0.7 percent on the day at 0.6600.

• As things currently stand, there is little resistance to a push towards 0.6500 in the near future.

• Beyond there, there is further support from the 50.0 retracement level @ 0.6467, which will be the first important target for sellers.

• For the time being, though, given the risk environment and the market’s beginning to price in a more hawkish Fed, the dollar might find some further legs as technical breakthroughs across the board play out.

EUR/USD

• EUR/USD falls to new two-month lows as the dollar remains robust post-Fed.
• EUR/USD eases to just below 1.1200, its lowest since November 24.
• The pair is now testing support around the 1.1200 handle, with the November low At 1.1186 coming into focus.
• A break below that might mean further danger to the downside, perhaps opening the door to 1.1000.
• The dollar has continued to rise today, riding the post-Fed atmosphere and developing solid beliefs across the board. GBP/USD is presently trading at 1.3400, while AUD/USD has dropped to 0.7070, with limited room for a decline below 0.7000. NZD/USD is also striking new lows since November 2020, falling to 0.6600, with no support predicted until 0.6500 next.
• The Fed’s more hawkish stance yesterday is the primary driver at the moment, and while the reality of a rate rise at every meeting this year isn’t written in stone, Powell didn’t deny it yesterday. And this is enough to get markets moving immediately in order to take a run at the important technical levels mentioned above.