EUR/GBP and AUD/USD surge while USD/CAD edges lower
The US dollar has come under pressure following the latest Fed decision, while the euro is making headway against the pound.
EUR/GBP on the up again
EUR/GBP has resumed its march higher it seems, after dropping towards the 200-day simple moving average (SMA) yesterday.
The early October bounce faltered as it headed towards £0.874, so a close above this level would help to reinforce the bullish view by creating a higher high.
A close below £0.868 would see the price drop below trendline support, a possible bearish signal.
AUD/USD surges after Fed meeting
A more cautious Federal Reserve (Fed) meeting has allowed AUD/USD to rally, after the past four weeks of consolidation.
Yesterday’s surge took the price through trendline resistance from early August, and also sees it above the 50-day SMA for the first time since late July.
Additional gains target the $0.65 area, which marked a zone of resistance over the past twelve weeks. A reversal back below $0.635 would point towards a renewed test of the $0.63 support zone.
USD/CAD drops back
After a solid rally during October, USD/CAD may come under pressure following last night’s Fed meeting.
A close below C$1.38 might provide the catalyst for a drop back towards trendline support from early October, or towards the rising 50-day SMA.
A close above C$1.3898 would mark a new multi-year high, with the price moving above the peak from August 2022.
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