<p>On the daily chart below, we can
see that the buyers are struggling breaking decisively above the 0.94 handle.
The falling channel was <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> and this generally leads to the
price rallying back to the top of the channel once there’s a breakout. So,
technically the buyers will target the 0.96 handle and if the US data keeps
coming in hot, then it’s basically assured that we will get there. </p><p>Yesterday, <a target=“_blank“ href=“https://www.forexlive.com/news/ka-powell-20230308/“>Fed
Chair Powell</a> opened the door for a 50bps hike and a higher
terminal rate if the data remains strong which prompted the market to buy the
USD aggressively. The next big event now is the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>NFP report on Friday</a> and if we get a beat, then we
will most likely see the USD bid across the board, while a miss would cause
some strong weakness in the greenback. </p><p>On the 4 hour chart below, we can
see more closely the struggle the buyers are finding extending past the 0.94
handle. We got quite a big pullback on the first try breaking out of that <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a>, but the buyers defended the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 0.9287. </p><p>Given that the market is now
pricing a higher chance of a 50bps hike, a higher terminal rate and chances of
good US data, we should expect the buyers to remain in control and keep bidding
the USD to new higher highs. </p><p>On the 1 hour chart below, we can
see where we would most likely find buyers in case the price pulls back before
pushing up again. The area between 0.9400 and 0.9380 has some technical
support. The 0.94 handle could be a <a target=“_blank“ href=“https://www.forexlive.com/Education/using-psychological-price-levels-for-your-trading-20220414/“>psychological
support</a> being a round number and the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level would bring the market back into equilibrium
from overstretched highs after yesterday’s huge rally. </p>
see that the buyers are struggling breaking decisively above the 0.94 handle.
The falling channel was <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> and this generally leads to the
price rallying back to the top of the channel once there’s a breakout. So,
technically the buyers will target the 0.96 handle and if the US data keeps
coming in hot, then it’s basically assured that we will get there. </p><p>Yesterday, <a target=“_blank“ href=“https://www.forexlive.com/news/ka-powell-20230308/“>Fed
Chair Powell</a> opened the door for a 50bps hike and a higher
terminal rate if the data remains strong which prompted the market to buy the
USD aggressively. The next big event now is the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>NFP report on Friday</a> and if we get a beat, then we
will most likely see the USD bid across the board, while a miss would cause
some strong weakness in the greenback. </p><p>On the 4 hour chart below, we can
see more closely the struggle the buyers are finding extending past the 0.94
handle. We got quite a big pullback on the first try breaking out of that <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a>, but the buyers defended the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 0.9287. </p><p>Given that the market is now
pricing a higher chance of a 50bps hike, a higher terminal rate and chances of
good US data, we should expect the buyers to remain in control and keep bidding
the USD to new higher highs. </p><p>On the 1 hour chart below, we can
see where we would most likely find buyers in case the price pulls back before
pushing up again. The area between 0.9400 and 0.9380 has some technical
support. The 0.94 handle could be a <a target=“_blank“ href=“https://www.forexlive.com/Education/using-psychological-price-levels-for-your-trading-20220414/“>psychological
support</a> being a round number and the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level would bring the market back into equilibrium
from overstretched highs after yesterday’s huge rally. </p>
This article was written by ForexLive at www.forexlive.com.