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EUR/USD, EUR/GBP down and USD/JPY up following hawkish FED

EUR/USD trades in two-month lows, EUR/GBP slips and USD/JPY rallies post FOMC.

EUR/USD drops to November $1.1186 low post hawkish FOMC statement

EUR/USD’s tumble through its two-month channel support line has taken it all way back down to the November low at $1.1186. Together with the October and November 2019 highs at $1.1179 to $1.1176 it is likely to offer support today.

Medium term the April and May 2019 lows at $1.1111 to $1.1107 are being targeted with minor support on the way down being found at the $1.1168 mid-June 2020 low. For today, resistance can be seen around the early to mid-December lows at $1.1228 to $1.1235

EUR/GBP slides back towards its breached resistance line at £0.8322

EUR/GBP remains short term under pressure and is seen slipping towards the broken resistance line at £0.8322. Earlier today, it found interim support at the £0.8335 early January low. Together with the 11 January trough at £0.8324 these levels are expected to withstand the current bearish pressure.

The cross is thus likely to stay above its £0.8313 to £0.8277 key support region, comprised of the December 2016, April 2017, December 2019 and February 2020 lows. Resistance sits between the November trough and 18 and 21 January highs at £0.8377 to £0.8381.

USD/JPY flirts with its last swing high at ¥115.06 post FOMC

After yesterday’s hawkish The Federal Open Market Committee (FOMC) statement, USD/JPY broke through its one-month downtrend line and rose above the 55-day simple moving average (SMA) which today drove the cross back to its mid-January high at ¥115.06.

Next up is the November peak at ¥115.52, a rise above which would lead to the early January high at ¥116.35 being back on the map. Support can be spotted between the mid-December high, 55-day SMA and breached one-month downtrend line at ¥114.28 to ¥114.16.

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