USD/JPY and USD/CAD move higher and AUD/USD falls back as markets await FOMC decision
The final Fed decision of the year looms, and FX markets are in cautious mood ahead of the news.
USD/JPY recoups Tuesday’s losses
After rallying off the 200-day simple moving average (SMA) at the end of last week, USD/JPY has made further headway.
Trendline resistance and a run of lower intraday highs stand in the way of fresh upside, though a close above ¥147.00 would suggest that more gains are likely, with the price heading back towards ¥149.80, and then on to the highs of November at ¥152.00
A close back below ¥144.80 would suggest another push to the lows of last week could be on the cards.
AUD/USD under pressure ahead of Fed decision
AUD/USD hit its highest level since the end of July at the beginning of December, but has since retraced below the 200-day SMA.
However, the bounce from the lows does appear to be intact, and it would need a move back below the $0.65 level to suggest more losses were on the way.
Despite this, the longer-term view remains bearish, the pair having declined since May 2021, recording lower highs since then. A continuation of this trend could see the price head back towards the October lows.
USD/CAD edges above $C1.36
The rally off the lows of last week has stalled for USD/CAD, though buyers continue to step in around $C1.354.
Recent gains have been halted at $C1.36, so a close above here would mark a fresh bullish development, and even suggest a resumption of the rally from the lows of the summer.
Alternately, a reversal back below the 200-day SMA and then below the early December low could see fresh losses towards $C1.34.
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