March 23, 2023

USD Fluctuates as Investors Anticipate Powell’s Speech & Central Bank Tightening

Tuesday’s trading has been mixed for the USD as investors await Jerome Powell’s semi-annual speech. In addition, traders anticipate further and longer rate hikes as central banks worldwide tighten policies in response to rising inflationary pressures.

The week is also filled with massive amounts of economic data, and many currencies will remain in flux with the data arriving. As a result, the USD has been experiencing fluctuations in value as traders weigh the potential impact of these policy changes on the global economy.


The EUR/USD has broken out of its consolidation range and surged upwards to hit a target of 1.0693. Despite this bullish movement, the currency pair may experience a slight dip to 1.0633 before continuing to climb toward the 1.0700 level. However, once it reaches this peak, the growth wave may end, and a downward trend could begin, with a potential target of 1.0570.


Moving on to the GBP/USD currency pair, there are indications that it may be building momentum for a potential price surge. Some analysts believe it could hit a target of 1.2044 on Wednesday, indicating a significant increase in value.

However, if the currency pair breaches this level and fails to maintain its upward momentum, it could begin a downward trend. In this scenario, the next potential decline target for the GBP/USD is 1.1920, representing significant support.

If the currency pair breaks through the level of 1.1920, it may indicate a pathway to 1.1733, representing a further decline in value.


The USD/JPY pair is creating a consolidation range of around 135.90. If the currency pair breaks out of this consolidation range in an upward direction, it may indicate a potential pathway to 136.90, representing a significant increase in value.

This upward trend could be followed by a further wave of growth towards 137.55, representing a strong bullish trend for the USD/JPY. However, if the currency pair reaches the level of 137.55, it may start a new downward trend towards 135.90


Turning our attention to the USD/CHF currency pair, there are indications that it may be entering a consolidation phase, which could lead to a correction in its value. If this occurs, the currency pair may decline to 0.9234 before potentially resuming its upward momentum. Assuming the correction is over, the growth wave may see the currency pair’s price rise to 0.9440.


Brent crude oil is currently completing a growth wave that has reached the price level of 86.15. This price represents a significant increase in value, and if Brent crude oil manages to breach this level, it could signal a bull run in the market. If this bull run occurs, the next potential targets for Brent crude oil could be 87.87 and 89.77.


The XAU/USD pair is hovering at the 1849.40 level. However, there is a possibility that XAU/USD may experience a correction towards the 1840.20 level, which could trigger a run down to 1836.20. If the correction does occur, traders should be prepared for a potential run down to 1830.00.

S&P 500

The S&P 500 is starting a correction towards the 4095.5 level, which may trigger a bearish run down to 3940.0. If the bearish run continues, traders should be prepared for further downward movement toward 3788.0.

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