EUR/USD and GBP/USD slump while USD/JPY rallies following Fed meeting
The euro and sterling have hit new two-year lows against the dollar following the Fed meeting, while the greenback itself strengthens against the yen.
EUR/USD dives through support
Euro bears got their wish yesterday, as EUR/USD slumped and succeeded in closing below $1.1120 support.
The pair is now at its lowest level in over two years, with the bearish trend firmly back in action. While oversold intraday, traders will likely be on watch for further declines, with any rebound towards previous support (now resistance) at $1.1120 likely to provide a fresh selling opportunity.
GBP/USD hit by stronger dollar
Having suffered from a weak pound, GBP/USD now gets hit by a strong dollar.
The pair hit its lowest level since March 2017 last night, and while the pair has stabilised since then, rebounds will likely continue to be selling opportunities, similar to the one seen yesterday. Given the heavy selling of late, a move above $1.24 would be needed to provide a more bullish view.
USD/JPY pushes to new four-week high
Last night’s Federal Reserve (Fed) meeting gave USD/JPY the impetus to push above the early-July high of ¥109.00.
This break higher confirms the bullish view, with dip buyers likely to enter on any pullback. The price is overstretched intraday, but dips towards ¥109.00 will provide buying opportunities. A move below ¥108.40 would break the previous higher low, and provide a more bearish view in the short term.
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