EUR/USD, GBP/USD and EUR/GBP Forecasts – Currency Markets Wait for FOMC

EUR/USD Technical Analysis

The euro initially tried to rally during the trading session on Wednesday, but we’ve seen a little bit of a pullback, just as we’ve seen over the last four sessions in a row, where the euro initially looks strong and then gives back the gains. We are currently sitting right on the 50-day EMA. So that, of course, is an indicator that people will pay some attention to. And I do think that it is probably only a matter of time before we have to make a bigger decision. And that time is probably later on Wednesday after the FOMC interest rate decision. And more importantly, the press conference. Right now, we are sitting right in the middle of a bigger range and very neutral.

GBP/USD Technical Analysis

The British pound has rallied slightly early during the trading session on Wednesday. But again, we have the FOMC meeting a little bit later, and that obviously will have a major influence on what happens with the US dollar. And hence what happens with this pair. The 1.32 level underneath should be support, right along with the 50-day EMA and the 200-day EMA that is sitting just under the price right now. The 1.34 level above should be resistant. By the end of the day, though, we’ll see what happens. If we break out of this little 200-point box, we might have a clue as to where we are going next.

EUR/GBP Technical Analysis

The Euro did try to climb against the British pound, but failed at the 0.8750 level again, and more specifically, the 50-day EMA. This is a market that I think is probably on the precipice of making a bigger move. And it’s worth noting that the rally that we had recently seen was actually very dangerously close to a major resistance barrier. So, I don’t know. We’ll see if this rolls over, but we are on the precipice of making a bigger decision. The next impulsive candle probably determines the next 100 pips.

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