EURUSD: the pair is correcting in the ascending range of 1.0570-1.1200
The lack of announcements on the financial calendar allows the pair EUR/USD to quote in a corrective trend around 1.0894.
The market participants focused their attention around the comments of the European Central Bank management, which said that the most part of the monetary parameters correction is already passed, since the agency has already increased the interest rate by 350.0 percentage points since the summer of 2022. Christine Lagarde also said that high inflation and contradictory forecasts for its further dynamics will not affect "hawkish" mood among officials of the authority, despite declining economic growth and the likelihood of banking crisis in the region. Head of the ECB expressed confidence that the EU has sufficient economic strength, therefore over time will be able to reduce the consumer price index to the target of 2.0% and there is no reason for public panic. Recall that the day before the ECB had raised the interest rate by 0.50% and refrained from predicting any further action on monetary parameters.
- Resistance levels: 1.0940 and 1.1031.
- Support levels: 1.0790, 1.0570.
USDJPY: The US dollar has resumed its decline
The trading instrument USDJPY is showing an active decline, reinforcing the dominance of the "bears", who had intercepted the initiative earlier. The asset trades at 130.50 in a decline in price, having updated the local minimum for February 10.
The American currency continues to be under the impact of the negative factors against the background of the USA Federal Reserve System decisions to increase the interest rate by 0,25%, to the target value of 5.00%. Some experts expected to see more decisive results from the hawks and harsh comments from the head of the agency, but the official shared comments avoiding specific forecasts. Against this background, the assurances of officials at the Treasury Department and the U.S. Federal Reserve about full control of the stability of the banking sector have extremely low credibility with investors. The flow of moderate account closing and the outflow of liquidity from deposits at credit institutions across the regions continues because of depositors' fears of losing their funds.
- Resistance levels: 131.00, 132.00, 133.00, 134.00.
- Support levels: 130.00, 129.39, 128.62, 128.00.
AUDUSD: The "Aussie" is testing the March highs on an upside breakout
The AUDUSD trading instrument is showing active strengthening and is vigorously testing the 0.6740 mark, intending to consolidate positions at the local March 6 high reached earlier in reaction to the Fed's monetary parameters decision.
According to preliminary forecasts, the agency raised the interest rate by 0.25% bringing the target to 5.00% and the highest since 2007. At the same time, investors have not received any forecasts from the head of the Fed on the next steps in 2023, and expert estimates of the value at the end of this year remain at the same level of 5.10%. The accompanying explanation of the officials indicates that the regulator is ready to make an additional correction of the key value in case of a separate need. The U.S. dollar came under immediate pressure on the Fed's final statements, but by the end of afternoon trading the instrument managed to win back its losses.
- Resistance levels: 0.6750, 0.6800, 0.6853 and 0.6900.
- Support levels: 0.6700, 0.6650, 0.6600, 0.6563.
Silver analytics
Holders of the U.S. currency suffered losses amid the rhetoric of U.S. Federal Reserve Chairman Jerome Powell, as the major competitors of the "American" strengthened considerably, including silver, reaching the 23.00 mark.
The Fed forecasted the Fed to raise the interest rate by 0.25% to 5.00%, marking a new high from 2007. Investors saw no concrete plans in Jerome Powell's statements for further correction steps through the end of this year, and the median expectation for the value through 2023 is held at 5.10% and through 2024 at 4.30%, strengthening from 4.10% for December. The termination of Signature Bank and Silicon Valley Bank, as well as the cumulative problems in the banking sector by region, was the impetus for the U.S. Federal Reserve to refuse to raise the interest rate by 0.50% in the short term. Meanwhile, investors in the precious metals market decided to make the most of it and increased demand for safe-haven assets, which increased the value, including that of silver.
- Resistance levels: 23.00, 24.50, 26.00.
- Support levels: 21.50, 20.00, 18.00.