EUR/USD tiptoes higher
A rebound here was certainly on the cards for EUR/USD, after some relentless moves lower.
But we will need a move back above $1.2150 to be sure that the buyers remain in charge. Otherwise, such a bounce could provide a fresh selling opportunity for those that missed the drop from $1.24. Any rally that fails to push on above $1.2150 would be another chance for the bears.
GBP/USD holds the 200-day SMA
Cable bears should be on alert for a possible rebound for GBP/USD too, but it may well be short-lived.
Any run that fails to move back above $1.38 would constitute a selling opportunity. The 200-day simple moving average (SMA) at $1.3539 has yet to be meaningfully tested, but if this is broken then $1.3320 would be the next level to watch for on the downside.
USD/JPY rally stalls
As expected, the Federal Reserve (Fed) meeting took some wind out of the sails of the dollar rally for USD/JPY.
Given how far the price has come in recent weeks it was always going to be tough for the Fed to keep the dollar moving higher. A pullback towards the rising trendline from the March lows would provide a possible buying opportunity, so we look for a dip towards ¥108.50.