EUR/USD, GBP/USD, and AUD/USD reverse lower as FOMC meeting sparks dollar resurgence
EUR/USD, GBP/USD and AUD/USD head lower as dollar dominance comes back on the cards.
EUR/USD tumbles as dollar domination comes back on the cards
EUR/USD has been on the slide following a Federal Open Market Committee (FOMC) meeting that saw Jerome Powell warn that the tightening phase will be more protracted and reach a higher terminal rate. Despite calls of a potential pivot in policy, that is some way off yet. As such, the wider bearish trend for EUR/USD is back in play here, with the pair expected to head lower once again. The current decline takes price into trendline support, although that is likely to break.
However, between the trendline, and $0.9631, we have two notable support levels in view. Ultimately, a bearish view holds unless we see price break through the $1.0198 swing-high.
GBP/USD reversing lower ahead of Bank of England meeting
GBP/USD has similarly been on the back foot, with recent gains looking to have set us up for another bearish turn for the pair. With the Bank of England (BoE) expected to raise rates by 75-basis points (bp) today, there is likely to be plenty of volatility as traders weigh up the GBP benefit of higher rates vs the economic risks it creates.
Nonetheless, with markets on the turn as risk-off sentiment dominates, it does look likely that we have seen a top for this market. A push through the $1.1738 resistance level would be required to negate this view.
AUD/USD rolls over after recent retracement
AUD/USD looks to be rolling over once again, with the pair faltering after the FOMC meeting. The bearish trend seen over the course of the year thus far looks to be back on the cards, with a move up through the $0.6547 level needed to bring a wider upward retracement into play.
However, we instead look to be heading swiftly lower, with the $0.617 low coming as the next major level of note.
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