U.S. Dollar Moves Lower Ahead Of Fed Decision
U.S. Dollar Index is losing some ground ahead of Fed Interest Rate Decision, which will be released soon.
FedWatch Tool indicates that there is a 92.8% probability that Fed will keep the federal funds rate unchanged. Neither market participants nor analysts believe that Fed will raise rates ahead of midterm elections.
U.S. Dollar Index made an attempt to settle above the resistance at 102.35 – 102.50 but failed to develop sufficient upside momentum. In case U.S. Dollar Index manages to settle above 102.50, it will head towards the next resistance, which is located in the 103.15 – 103.30 range.
EUR/USD Rebounds As GfK Consumer Confidence Exceeds Estimates
EUR/USD gains ground as traders focus on the better-than-expected GfK Consumer Confidence report from Germany. The report showed that Consumer Confidence decreased from -30.6 in October to -30.8 in November, compared to analyst forecast of -30.9.
In case EUR/USD climbs above the 1.1150 level, it will head towards the resistance level at 1.1175 – 1.1190. A move above the 1.1190 level will push EUR/USD towards the 50 MA at 1.1201. If EUR/USD manages to settle above the 50 MA, it will head towards the resistance level at 1.1250 – 1.1265.
GBP/USD Moves Away From Session Lows As Traders Focus On UK Budget
GBP/USD rebounded from session lows as traders reacted to UK budget plan. The budget project contained no major surprises and provided some support to UK bonds.
If GBP/USD settles back above the support at 1.3285 – 1.3300, it will head towards the 50 MA at 1.3351. A move above the 50 MA will open the way to the test of the resistance level at 1.3385 – 1.3400.
EUR/USD Price Forecast
Every new EUR/USD analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all EUR/USD forecastsOn the support side, GBP/USD needs to settle below the support at 1.3285 – 1.3300 to have a chance to gain downside momentum in the near term. In this case, GBP/USD will head towards the next support at 1.3185 – 1.3200.
USD/CAD Pulls Back As BoC Raises Rates
USD/CAD moved lower as traders focused on BoC Interest Rate Decision. The Bank of Canada raised the rate from 2.25% to 2.5%, in line with analyst estimates.
In its statement, the Bank of Canada noted that the rate hike was necessary to reduce the risk that high energy prices spread to prices of other goods and services. The BoC also signaled that additional hikes were possible.
If USD/CAD manages to settle below the 50 MA at 1.4050, it will head towards the nearest support at 1.3985 – 1.4000. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
USD/JPY Tests Resistance At 158.00 – 158.50
USD/JPY is moving higher as traders prepare for Fed decision. Treasury yields gained ground, providing additional support to USD/JPY. The yield of 2-year Treasuries climbed above the 4.77% level, while the yield of 10-year Treasuries settled above 5.02%.
Currently, USD/JPY is trying to settle above the resistance at 158.00 – 158.50. This resistance level has been tested many times and proved its strength. In case this attempt is successful, USD/JPY will move towards the next resistance at 160.00 – 160.50.
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