Traders are cautious ahead of the Fed decision, which will be released on Wednesday.
U.S. Dollar Index pulled back after the release of the weaker-than-expected NAHB Housing Market Index report. The report showed that NAHB Housing Market Index declined from 50 in August to 45 in September.
In case U.S. Dollar Index declines below the 105 level, it will move towards the nearest support, which is located in the 104.45 – 104.70 range.
EUR/USD remains stuck near the support in the 1.0670 – 1.0700 range. There are no important economic reports scheduled to be released in the Euro Area today, so traders will stay focused on general market sentiment.
If EUR/USD manages to settle below the 1.0670 level, it will gain additional downside momentum and move towards the next support in the 1.0520 – 1.0550 range.
GBP/USD is trying to rebound from multi-month lows as traders take some profits off the table after the recent move.
If GBP/USD climbs back above the 1.2400 level, it will head towards the resistance at 1.2470 – 1.2500.
USD/CAD moved below the 1.3500 level as oil markets tested new highs. Other commodity-related currencies have also received some support today.
In case USD/CAD stays below 1.3500, it will head towards the support, which is located in the 1.3370 – 1.3400 range.
USD/JPY remains stuck below the 148.00 level as traders fear that BoJ may intervene in case USD/JPY moves towards the psychologically important 150 level.
However, there are no signs of a pullback. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.