EUR/USD, EUR/GBP and GBP/JPY await FED, BoE and BoJ rate decisions
EUR/USD consolidates, EUR/GBP tries to break through resistance and GBP/JPY remains slightly bid ahead of this week’s FED, BoE and BoJ central bank meetings.
EUR/USD consolidates above its $1.0806 multi-year low ahead of FOMC meeting
EUR/USD keeps holding above Friday and Monday’s $1.0902 low, ahead of this week’s US Federal Reserve (Fed) meeting which is likely to lead to a new cycle of rate hikes with an anticipated 25 basis point (bp) increase in the target Fed funds rate.
Failure at $1.0902 would probably lead to last week’s low at $1.0806 being back in the limelight.
While $1.0902 holds, however, a gradual advance back towards the January low and last week’s high at $1.1121 to $1.1122 may ensue. Together with the two-month downtrend line at $1.1149 this area is likely to cap the upside, though. Further up the 55-day simple moving average (SMA) can be spotted at $1.1264.
EUR/GBP breaks through four-month downtrend line ahead of BoE rate decision
EUR/GBP has broken through its four-month downtrend line at £0.8428 and risen above last week’s £0.8436 high as investors await the outcome of Wednesday’s Bank of England (BoE) rate decision. The market has priced in a third rate hike in a row, taking the base rate to 0.75%.
The February peak at £0.8478 is now in focus, together with the 200-day SMA at £0.8482.
Potential slips should see support at the late February £0.8408 high and also along the 55-day SMA at £0.8362.
GBP/JPY is heading back up while awaiting BoE and BoJ meetings
GBP/JPY is likely to continue its recovery from the ¥150.98 early March low and targets the one-month downtrend line, early March high and the 55-day SMA at ¥155.08 to ¥155.23 since the BoE is expected to raise rates by another 25 bp while the Bank of Japan (BoJ) is to remain dovish with no change expected.
Minor support is found along the 200-day SMA at ¥153.35 and also between the January and early March lows at ¥152.91 to ¥152.67.
Key support remains to be seen at the current March low at ¥150.98, a slip through which would put the December trough at ¥148.98 back on the map.
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