EUR/USD and AUD/USD push higher while USD/JPY consolidates
Gains in EUR/USD and AUD/USD have continued, while USD/JPY has edged back from ¥140.00.
EUR/USD touches one-month high
EUR/USD's strengthened into the US consumer price index (CPI) data, and made further headway after the release, though a close above the 100-day simple moving average (SMA) eluded it.
Nonetheless, a higher low still seems to be in place here, with the price making gains over the past week and slowly clawing back lost ground. A bullish moving average convergence/divergence (MACD) crossover remains in place too, and buyers may continue to enter on intraday weakness. Of course, two major events lie ahead in the shape of the Federal Reserve (Fed) and European Central Bank (ECB) meetings, which are likely to provoke increased volatility.
A move back below $1.065 would be needed to dent the bullish view, and a loss of the late May-low at $1.0635 would be a bearish short-term development.
AUD/USD nears $0.68
AUD/USD's remarkable recovery here has pushed on towards $0.68, though it has encountered sellers around this level.
Given the size of the move from the May-low around $0.65 it is not surprising that some hesitancy has crept in, and buyers may be cautious about pushing their luck here ahead of the Fed meeting. Crucially the $0.68 level was the zone that held back gains in March April and May, so it is a key area to break for any further upside.
Some would not be surprising here, though a move back below $0.667 would be needed to suggest a renewed bearish view was emerging.
USD/JPY looking for more gains
USD/JPY's consolidation after its May rally appears to be resolving into a new move higher. After dipping towards ¥138.64 the buyers have reasserted control and a new attempt to renew the May rally could be in play.
Like the other two pairs much will hinge on the Fed decision and press conference, with the added frisson of the Bank of Japan (BoJ) meeting to complicate matters. Despite this, the buyers appear to be in overall control, and a new attempt to break the May-high around ¥140.90 could open the way to ¥142.25, not seen since November.
Sellers will need a close back below ¥138.00 to suggest that a bigger reversal could be developing.
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