The EURUSD Retreats to the Support at 1.3325
Ahead of the FOMC release the markets have turned short: their participants were not particularly active and, accordingly, the movement in the EURUSD has not been noted. The pair has tested hesitantly the 1.3385 level, then it was gradually slipped to 1.3325 and found the support here. Today it has climbed to 1.3343.There is nothing to add in general, but we can only note that the inability of the euro to continue its growth after the opening shows the weakness of the bulls. At the same time, the bears have failed to return the pair to the levels below Friday’s close, which is negative for them. It is possible that the euro will make more efforts to break through the resistance.
The GBPUSD Declines to 1.5888
The pair GBPUSD has failed to continue its grow after yesterday’s opening. After a trial of strength at the level of 1.5962 the bulls suddenly lost interest in the pair and leaving it alone with the bears, went about their business. As a result, the pair was decreasing during the day, until the currency rate dropped to 1.5888. Today the bulls has recalled about it, and the rate rose to 1.5912. The overall picture for the GBPUSD is very positive, and the pair looks capable of rising to 1.6110. To do this it would need to overcome the psychological level of 1.6000. The fall towards 1.5766 should be considered as an opportunity to open long positions at the best price.
The USDCHF Partially Played the Losses Incurred While Opening
Yesterday the fall of the USDCHF after opening had not been developed during the whole day, and the dollar recovered to 0.9277. Here the interest in sales has remained, which puts the U.S Dollar under pressure, not letting it up. The results of the FOMC meeting can be only assumed, as well as market reaction to them, but until the picture on the dollar means its farther decline, and only growth above 0.9307-0.9360 will weaken the bearish momentum.
The USDJPY Is Above the 99th Figure Again
Yesterday the bears on the USDJPY tested the level of 98.45, but unsuccessfully. Later, the dollar rose above the 99th figure, but at the level of 99.36 collided with sales and went back to 99.00. The results of the FOMC meeting may trigger strong movements in the USDJPY, but it is hardly possible to predict its direction. Therefore, even if the pair goes actively in one or another direction prior to the announcement of the results, it is wise to refrain from opening new positions on it. Reducing the volume of Fed quantitative easing is positive for the U.S. dollar, but it is better not to neglect the fact that the volume of open short positions on the yen is still at a high level, which retains the risks of the correction development.
