Well the Federal Reserve cut rates by a quarter percentage instead of the full point everyone was expecting which resulted in the USD gaining momentum to the upside.  I would consider this gain as temporary as we were due to a pull back on a majority of currencies as they were running pretty hot and profit taken took part.

In that case, it is good news as a majority of pairs have now moved back into the dynamic area of resistance (area between the 30 and 50 simple moving averages) which may result in a spring board like effect to the direction of the SMAs.

Here are a 3 potential setups on the 4-hour chart that I am currently eying and may likely break within the next couple of hours.

EUR/USD:

Euro-USD, March 20

USD/CHF:

USD-CHF, March 20

USD/JPY:

USD-JPY, March 20

I also stumbled upon this great article written by the fine folks over at DailyFX.com regarding the Top 5 Most Market Moving Indicators for the U.S. Dollar and may help the newbie trader determine what news exactly impacts the US Dollar and is also a good primer for those who’ve been in the game for a while as well.




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