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

U.S. Dollar Moves Lower As Traders Prepare For Fed Decision

U.S. Dollar Index is losing ground as traders wait for Fed Interest Rate Decision, which will be released soon. Analysts expect that Fed will cut the rate from 4.0% to 3.75%.

The nearest support level for U.S. Dollar Index is located in the 98.85 – 99.00 range. A move below the 98.85 level will push U.S. Dollar Index towards the next support level at 98.00 – 98.15.

EUR/USD Gains Ground As ECB Is Ready To Lift Growth Outlook

EUR/USD gained some ground as ECB President Christine Lagarde said that the central bank could lift growth outlook of the Eurozone. She also added that monetary policy remained in a “good place”, which indicated that the ECB did not plan to cut rates in the near term.

In case EUR/USD manages to settle back above the 1.1650 level, it will head towards the resistance at 1.1715 – 1.1730.

GBP/USD Rebounds As Traders Focus On Fed

GBP/USD moved higher as traders prepared for Fed decision and waited for Powell’s comments.

The technical picture remains unchanged as GBP/USD needs to settle above the resistance level at 1.3360 – 1.3375 to gain additional upside momentum in the near term.

USD/CAD Is Mostly Flat As BoC Leaves Rates Unchanged

USD/CAD was swinging between gains and losses as traders reacted to BoC Interest Rate Decision. The Bank of Canada decided to leave the interest rate unchanged at 2.25%, in line with analyst expectations.

A successful test of the support at 1.3815 – 1.3830 will open the way to the test of the next support level, which is located in the 1.3720 – 1.3735 range.

USD/JPY Pulls Back As Treasury Yields Fall

USD/JPY moved lower as traders took some profits off the table after the recent rebound. Falling Treasury yields put additional pressure on USD/JPY.

If USD/JPY stays below the 156.50 level, it will head towards the 50 MA at 155.65. A move below the 50 MA will push USD/JPY towards the support at 154.50 – 155.00.

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