All Eyes On The Fed

Speculation that an impending economic slowdown will prompt central banks to switch back to looser monetary policy triggered a renewed surge higher in markets. The euro and DAX recovered recent losses while the U.S. dollar tumbled despite higher Treasury yields.

All eyes turn to the Federal Reserve rate decision today at 18:00 UTC and Chair Jerome Powell’s press conference 30 minutes later. The probability of a 25bp rate hike is around 75 percent. Sure is, that if the Fed puts the banking crisis ahead of inflation and rate increases, the dollar will go even lower. Traders should expect high volatility.

EUR/USD: Focus is on a break of 1.0810 that could send the euro towards a test of 1.09-1.0950. Above 1.0960 we will pay attention to the euro’s latest high at 1.1033. On the downside, we will watch out for a break below 1.0680 and further below 1.0650 in order to sell the euro towards 1.0550.

GBP/USD: The cable reversed shy of 1.23. If the resistance area around 1.2350 breaks to the upside, we could see another of 1.2450 with a potential breakout chance to the upside. Bears should watch out for prices below 1.21 in order to sell the pound towards 1.20 and 1.18.

Daily Forex and DAX Signals:

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Our trading ideas for today 22/3/23:

EUR/USD

Long @ 1.0780

Short @ 1.0735

GBP/USD

Long @ 1.2275

Short @ 1.2185

DAX® (GER40)

Long @ 15260*

Short @ 15190

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

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