EUR/USD, GBP/USD and USD/JPY await BoJ, Fed and BoE rate decisions
Outlook on EUR/USD, GBP/USD and USD/JPY ahead of plethora of major central bank rate decisions.
EUR/USD continues to hover above key support despite heightened Middle East tensions
Despite ongoing Middle East tensions EUR/USD continues to range trade in low volatility above its key $1.0496 to $1.0444 support zone which consists of the mid-October low, the mid-November high and also the 7 December and 6 January lows.
While last week’s low at $1.0522 underpins, Friday’s high at $1.0597 may be overcome in which case the mid-October high at $1.0639 and the July-to-October downtrend line at $1.066 could be back in the picture.
GBP/USD still hovers above its $1.2038 early-October low
GBP/USD’s slide towards its early-October seven-month low at $1.2038 is losing downside momentum ahead of Thursday’s Bank of England (BoE) rate decision.
While Thursday’s low at $1.207 holds, Friday’s high at $1.2162 may be revisited. Minor resistance above this level is seen around the $1.2219 mid-October high. While trading below the next higher 24 October high at $1.2288, overall downside pressure should retain the upper hand, though. A fall through $1.2038 would put the psychological $1.20 mark on the map.
USD/JPY slid back below the psychological ¥150.00 mark ahead of BoJ rate decision
USD/JPY has come off last week’s new one-year high at ¥150.78, made near the October 2022 peak at ¥150.94, as Tuesday’s Bank of Japan (BoJ) monetary policy meeting looms large.
The cross is currently trading back below the psychological ¥150.00 mark and dipped to ¥149.29 on Monday morning. Below it lies the 17 October low at ¥148.85. Minor resistance above the ¥150.00 level can be found at the ¥150.16 early October high.
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