Major currencies changed slightly for the day after the dollar rose again yesterday as reverberations after the FOMC continued to play out.
EUR / USD fell below the 200-day MA, declining to around 1.1900, while GBP / USD fell to 1.3900, while sellers insisted on closing just below the 100-day MA for perhaps the first time since July last year .
Meanwhile, AUD / USD also sank slightly below its own 200-day MA and traded below the two key daily moving averages for the first time since May last year, with the level of 0.7500 being observed next by sellers.
In short, the dollar has gained new life and is technically pushing the agenda – even in gold – but as the profitability of the Treasury shows little tracking, it remains to be seen how much of the latter move can be maintained.
However, it’s hard to argue with the charts on the other hand – especially after seeing the FX consolidate and roll in the last 4-5 weeks before that.
Looking ahead, it’s still about the effects after the Fed.
Junior Trader Nikolay Yordanov