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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​​​EUR/USD, AUD/USD rally as USD/JPY slips on dovish Fed ​​

​​Outlook on EUR/USD, AUD/USD and USD/JPY amid dovish Fed ahead of ECB and BoE rate decisions.

USD Source: Bloomberg

​​​EUR/USD rallies on dovish Fed

EUR/USD has resumed its ascent as the US Federal Reserve (Fed) indicates three rate cuts in 2024, leading to a drop in the greenback ahead of Thursday’s European Central Bank (ECB) monetary policy meeting.

​The late August high at $1.0945 is now in sight with the 14 November high at $1.0887 and the 22 November low at $1.0852 offering support. Further down meanders the 200-day simple moving average (SMA) at $1.0829.

UER/USD chart Source: IT-Finance.com
UER/USD chart Source: IT-Finance.com

​AUD/USD rallies to five month high

AUD/USD rallied to a five-month high as a dovish Fed pushed the US dollar index to a four-month low while the Australian jobless rate hit its highest level in 1 ½ years.

​The late July high at $0.6739 currently acts as resistance but a rise above it would engage the 27 July high at $0.6821. Slips should find support around the $0.6688 early December high below which sits minor support at Thursday’s $0.6663 low.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

USD/JPY drops to five-month low

USD/JPY saw another sharp drop as the US Fed indicates that a top in the rate cycle has been reached and anticipates three rate cuts in 2024. This brought forward market expectations of a first rate cut from May to March and increased expected cumulative cuts to 150 basis points (bps) in 2024.

USD/JPY slid to ¥140.95, a level last traded at the end of July, and could extend its losses to the ¥138.07 to ¥137.25 July lows. Resistance above the 200-day SMA at ¥142.44 and Thursday’s ¥142.91 intraday high is to be found at the ¥144.45 September low.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

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