<p>On the daily chart below, we can
see that the market found <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at the 1731 level and started to
range as buyers and sellers try to prevail on each other. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are still clearly crossed to the downside indicating a downtrend. </p><p>The <a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-fed-hikes-25-basis-points-dollar-initially-falls-20230322/“>Fed
yesterday</a> didn’t offer much support for the market as they hiked by 25 bps and
kept everything unchanged, including QT and no rate cuts for this year besides
the market pricing for ones. This should indicate that they are still resolute
on bringing inflation down to their 2% target and that they may be seeing risks
in the economy that the market has not yet fully priced in. </p><p>On the 4
hour chart below, we can see more closely the range created between the support
at 1731 and the resistance at 1800 where we can also find the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level of the entire selloff. </p><p>The
sellers leant again on the resistance and extended the fall as the Fed kept on
its tightening path, although they were less hawkish this time as risks around
the banking sector forced them to be cautious. </p><p>On the 1 hour chart, we can see
that the price has now pulled back a bit since yesterday’s selloff and it’s now
at the 38.2% Fibonacci retracement level. We have also the red long period
moving average here for <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a>, so we should see the sellers
piling in here or the 50% Fibonacci level. </p><p>The target on the downside would
be first the support of the range and second new lower lows. The buyers, on the
other hand, will need to break above the 61.8% Fibonacci level to target again
the resistance and try a breakout to the upside. </p>
see that the market found <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at the 1731 level and started to
range as buyers and sellers try to prevail on each other. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are still clearly crossed to the downside indicating a downtrend. </p><p>The <a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-fed-hikes-25-basis-points-dollar-initially-falls-20230322/“>Fed
yesterday</a> didn’t offer much support for the market as they hiked by 25 bps and
kept everything unchanged, including QT and no rate cuts for this year besides
the market pricing for ones. This should indicate that they are still resolute
on bringing inflation down to their 2% target and that they may be seeing risks
in the economy that the market has not yet fully priced in. </p><p>On the 4
hour chart below, we can see more closely the range created between the support
at 1731 and the resistance at 1800 where we can also find the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level of the entire selloff. </p><p>The
sellers leant again on the resistance and extended the fall as the Fed kept on
its tightening path, although they were less hawkish this time as risks around
the banking sector forced them to be cautious. </p><p>On the 1 hour chart, we can see
that the price has now pulled back a bit since yesterday’s selloff and it’s now
at the 38.2% Fibonacci retracement level. We have also the red long period
moving average here for <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a>, so we should see the sellers
piling in here or the 50% Fibonacci level. </p><p>The target on the downside would
be first the support of the range and second new lower lows. The buyers, on the
other hand, will need to break above the 61.8% Fibonacci level to target again
the resistance and try a breakout to the upside. </p>
This article was written by ForexLive at www.forexlive.com.