Forex Market Watch 18 March 2024 – 21 March 2024

Forex Market Watch 18 March 2024 – 21 March 2024

Article by: ETO Markets

The Japanese yen gets some momentum and somewhat recovers from its recent steep losses, which have brought it to its lowest level since November 2023 when compared to the US dollar the day before. The Bank of Japan is reportedly considering raising rates in July, although an increase in October is thought to be the most likely. Furthermore, the positive domestic data gives the JPY a little boost despite rumours that Japanese authorities may step in to stop any further decline in the value of the national currency. The USD/JPY pair is heavily pressured downward by this as well as the selling bias in the US dollar following the FOMC meeting.  

the Australian dollar gained ground for the second straight day, most likely helped by encouraging jobless figures out of Australia. In parallel, the Federal Open Market Committee's decision to keep interest rates at 5.5% during Wednesday's policy meeting resulted in a notable decrease in the value of the US dollar. The AUD/USD pair gained support from this decision. The US Federal Reserve Chair Jerome Powell's dovish statements during the press conference following the meeting further put further negative pressure on the currency.

Taking a closer look at the overall macro environment, the Federal Reserve and the European Central Bank are expected to begin their easing cycles, possibly as early as June. The two central banks may adopt different tactics as a result of the anticipated differences in the rate at which further interest rate cuts occur. However, it is not anticipated that the ECB will fall much behind the Fed.

The upward resistance for EUR/USD is expected to be tested at the March 8 high of …, the weekly high of …, and the psychological barrier of ... From here, further gains can bring the price back to its December 2023 peak of ...

A stronger decline to the 2024 low of … could be triggered by a sustained breach below the pivotal 200-DMA at ... From here, the weekly low of …, the 2023 bottom of …, and the round level of … are in order of decreasing value. 

According to figures released on Wednesday by the UK's Office for National Statistics, inflation in February decreased to 3.4% annually from 4% in January based on changes in the Consumer Price Index. This result was below the market expectation of 3.6% and was the lowest since September 2021. In addition, the ONS stated that the Core CPI increased by 4.5% during the same time frame, as opposed to 5.1% in January and the 4.6%.

The upper boundary of the Bollinger Band and a psychological level of … coincide to form the major pair's immediate upside barrier. A significant break above the latter will trigger a rally that will peak at … on March 14 and eventually reach … on March 11 and the … round number.

The first support level, on the other side, is situated at …, the 100-EMA. The low on March 20 at … is the extra downside filter to keep an eye on. Any further selling will result in a decline to the Bollinger Band's lower bound. 

Want completely chart technical analysis
and trade recommendations on?

Want completely chart technical analysis
and trade recommendations on?

Want completely chart technical analysis
and trade recommendations on?

  • Forex

    Precious Metals

    Energies

    Indices

    Crypto CFDs

  • Forex

    Precious Metals

    Energies

    Indices

    Crypto CFDs

Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

c

Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

c

Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

c