EUR/USD, GBP/USD rally while USD/JPY falters after BoE, Fed rate cuts
EUR/USD, GBP/USD rally while USD/JPY falters at resistance following BoE, Fed widely anticipated 25 basis point rate cuts.
EUR/USD recovery underway
Following the US Fed's (Federal Reserve bank) widely anticipated 25 basis point rate cut, the US dollar weakened. This benefitted EUR/USD which so far bounced back to $1.0824. A rise above this level is expected to take place over the coming days with the 200-day simple moving average (SMA) at $1.0868 being eyed.
Previous resistance at $1.0778-to-$1.0761 should now act as a support zone due to inverse polarity.
GBP/USD rallies
Following Thursday's widely anticipated Bank of England (BoE) 25 basis point rate cut, GBP/USD rallied as the US dollar weakened amid the Fed's 25 basis point rate cut. The key $1.3000-to-$1.3048 resistance zone is thus back in play. It would need to be exceeded, for a bullish reversal to be confirmed.
Support is now seen around the 24 October low at $1.2988.
USD/JPY comes off resistance
USD/JPY has been rejected by the ¥154.56-to-¥155.37 resistance area which consists of the early June high and the 18 July low. Minor support is seen along the 200-day SMA at ¥151.64.
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