USD’s post FOMC selloff extends in Asia session, except versus AUD. Aussie pares back some gains after disappointment from its own employment data.
For the week, USD remains the worst performing one, followed by JPY. GBP and CAD remain nearly equally strong.
Two technical developments are worth noting after FOMC.
Firstly GBP/USD has now surged past 1.4144 resistance. The development further solidify the case that correction from 1.4345 has completed at 1.3711, as supported by 55 day EMA. And it’s held above 1.3651 resistance turned support. That, thus, keep GBP/USD well supported in the healthy medium term up trend. Current rise should now extend to 1.4345 resistance technically. But of course, that will be subject to the outcome of today’s BoE rate decision. While there is practically no change for BoE to hike, any hawkish twist of the language, or votes for hike, could shoot GBP/USD up through 1.4345.
Euro is actually the third strongest for the week, following Sterling and Canadian Dollar. EUR/USD’s breach of 1.2358 following FOMC also affirms the case that price action from 1.2455 are corrective. And the pattern could have completed at 1.2238 already. Further rise is now expected to 1.2445. Break will target 1.2555, the real key resistance level. So far, EUR/USD is also staying in healthy up trend as supported by rising 55 day EMA and above 1.2091 resistance turned support. Just that 38.2% retracement of 1.6039 (2008 high) to 1.0339 (2017 low) at 1.2516 is an important hurdle to overcome.
