Forex Forecast And Cryptocurrencies Forecast For March 22 - 26

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First, a review of last week’s events:

EUR/USD

It has become clear following the meeting of the Open Market Committee (FOMC) that the US Federal Reserve does not intend to raise interest rates until at least 2023. The Fed is not going to change other parameters of the quantitative easing (QE) program either, as long as inflation in the United States is growing, the manufacturing sector is recovering, and is pulling up the service sector. The bill signed by US President Joe Biden on a new $1.9 trillion package, according to the Fed, is quite a sufficient measure to stimulate the economy at this stage.

This position of the American regulator satisfied (or upset) both bulls and bears on the EUR/USD pair to the same extent, and as a result the pair spent the whole week in a narrow sideways channel with an amplitude of only 110 points, 1.1875-1.1985, and ended the trading session near the 1.1900 level;

GBP/USD

As mentioned above, the US Fed refused to adjust its monetary policy. But the management of the Bank of England refused to do the same unanimously at its meeting on Thursday March 18. According to their statement, the bank "does not intend to tighten monetary policy at least until there is clear evidence of the use of untapped potential and the achievement of the 2 percent inflation target." So, one should not expect a rise in interest rates on the pound.

As a result of the identical decisions of both regulators, the GBP/USD pair continued to move sideways. Recall that last week, a third of experts voted for the growth of the pair, a third - for its fall, and the remaining third made a Solomon decision, announcing that the pair would move eastward, limiting the growth by the resistance at 1.4000, and the fall by the support at 1.3775. And this forecast turned out to be almost perfect. The fluctuations of the pair were limited to the range of 1.3800-1.4000. The last chord sounded at 1.3865;

USD/JPY

The Japanese regulator also performed in a chorus with the US Federal Reserve and the Bank of England. The Bank of Japan left the interest rate at the same negative level, minus 0.1%, on Friday, March 19. At the same time, it will continue to buy back long-term bonds in order to maintain the yield on its 10-year securities at near zero. The statements of the Bank's management regarding the prospects for monetary policy were also consonant vague with the statements of their colleagues from the USA and Great Britain: “we are ready for changes as needed”. It is not specified what the criteria for such "necessity" are.

The result of such a “sluggish” week was the consolidation of the USD/JPY pair in an even narrower range than EUR/USD and GBP/USD. After holding in the channel 108.60-109.35 for all the five days, it finished at 108.87;

Cryptocurrencies

Bitcoin renewed its all-time high once again over the past week, reaching $61,670. This was followed by a quick rollback. However, the main currency managed to stay within the upward channel, having received support at its lower border, in the $53,300-53,900 zone. This correction attracted buyers waiting for a new opportunity for their purchases, and the BTC/USD pair is trading around $58,500 on the evening of Friday March 19.

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Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is ...

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