Current level – 1.1820
The bulls prevailed during yesterday’s trading session and the successful breach of the resistance zone at 1.1805 led to new gains for the euro against the greenback. At the time of writing, the pair is sitting just above the mentioned level, which is currently acting as a support zone. If the bears enter the market, the corrective phase should be limited by this support.. If this proves to be the case and the mentioned support holds, the pair will most likely head towards the resistance zone at 1.1850 – 1.1880. The Fed interest rate decision that will be announced today at 18:00 GMT and the following press conference (18:30 GMT) will be of great importance for the value of the U.S. dollar. Sharp moves in either direction can be expected then as we find out whether the current high levels of inflation are transitory and if there will be any hints of the Fed taking a more hawkish stance.
Current level – 109.80
During yesterday’s trading session the Japanese yen appreciated against the U.S. dollar and the pair tested the support at 109.72. However a breach of this level did not happen. If the currency pair holds above the mentioned support, then a test of the resistance at 110.30 will be the most probable scenario. In case the support at 109.72 gets breached, a decline towards the next support at 109.30 can be expected.
Current level – 1.3844
The sterling continues to appreciate against the dollar and, at the time of writing, the currency pair is on the verge of testing the resistance at 1.3894. If the bulls prevail and manage to overcome this critical level, then the currency pair would probably head towards a test of the resistance at 1.3970. However, before this level gets breached and the upward movement continues, it is possible for the GBP/USD to enter a corrective phase and test the support level of 1.3800.