U.S. Dollar Gains Some Ground Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Attempts To Rebound Ahead Of Fed Decision

U.S. Dollar Index gains some ground as traders wait for Fed Interest Rate Decision. Fed is expected to cut the federal funds rate from 4.5% to 4.25%. Traders will also focus on FOMC Economic Projections, which will highlight the potential trajectory of the federal funds rate. These projections will likely have a major impact on market dynamics.

The nearest support level for U.S. Dollar Index is located in the 96.40 – 96.55 range. In case U.S. Dollar Index settles below this level, it will head towards the next support at 95.50 – 95.65.

EUR/USD Pulls Back As Traders Take Profits After Rally

EUR/USD pulled back from recent highs as traders took some profits off the table ahead of Fed decision.

A successful test of the resistance at 1.1870 – 1.1885 will open the way to the test of the next resistance level at 1.1960 – 1.1975.

GBP/USD Tests Resistance At 1.3665 – 1.3680

GBP/USD is moving higher as traders focus on inflation data from the UK. Inflation Rate remained unchanged at 3.8% in August, in line with analyst consensus.

In case GBP/USD manages to settle above the 1.3680 level, it will move towards the next resistance at 1.3775 – 1.3790.

USD/CAD Gains Ground As BoC Cuts Rates

USD/CAD moved higher as traders reacted to BoC Interest Rate Decision. BoC cut the interest rate from 2.75% to 2.5%, in line with analyst estimates.

If USD/CAD climbs back above the 1.3780 level, it will move towards the 50 MA at 1.3816.

USD/JPY Moves Lower As Traders Wait For Powell’s Comments

USD/JPY pulls back despite rising Treasury yields. From a big picture point of view, traders remain cautious ahead of Fed decision.

A move below the 146.00 level will open the way to the test of the support level, which is located in the 143.00 – 143.50 range.

For a look at all of today’s economic events, check out our economic calendar.