The EURUSD is trading along a descending short term trend line, it found support at 1.3805, where the 50 SMA has been established on the Daily Chart. A decisive break below this support will cause the Euro to lower down to the 38.2 Fibonacci level at 1.3750, possibly a follow by fall down to 23.6 Fibonacci at 1.3642. On the other hand, if Germany manages to hold the Euro in bullish mode, a break above 1.3860 will trigger the rally up to 1.4000.
The GBPUSD has been doing well lately. The strongest currency pair, beating analysts’ estimates and performing above expectations has been lowering on volume last few days, suggesting that corrective move might be ahead. The 200 SMA trading at the rate of 1.6234 might be retested around the rate of 1.6425, the 61.8 Fibonacci level. Otherwise the cable remains bullish as the recent price action seems a bit indecisive.
Technically, we expect Sterling to lower down to the pivotal psychological level of 1.6700, followed by a lower level of (already mentioned) 1.6425 support before going for more gains.
The Aussie has been performing well since January, trading within a bullish channel and at the moment lowering down to a long term uptrend support. We expect the AUDUSD to fall down to the rate of 0.9225, this was followed by a rebound back above the 0.9400 key levels. On the daily chart 50 and 200 SMA has crossed, suggesting bullish sentiment to be seen in upcoming weeks. Our opinion is that we would not sell the Aussie dollar now, unless an unlikely break below 0.9150 does not occur.
The USDJPY pair indicates that the U.S. dollar might be onto something, ahead of proper gains at least on this market. Since February has been trading quite choppy, but the recent price action suggests that the U.S. dollar might be ahead of a rally up to the high of 104.60. Meanwhile consolidation channel between 101.300 and 103.400 stays intact. A break below or above would give us more clue about the future direction.
Further reading: Join a live coverage of the Fed decision on Wednesday from 17:45 GMT