US Dollar Quiet Before Fed Meeting Minutes; Analysis on EUR/USD, USD/JPY & USD/CAD
The US dollar experienced slight declines on Tuesday amid subdued US yields, with no major catalysts driving the session.
NEWS
2/21/20242 min read
US Dollar Quiet Before Fed Meeting Minutes; Analysis on EUR/USD, USD/JPY & USD/CAD
The US dollar experienced slight declines on Tuesday amid subdued US yields, with no major catalysts driving the session. However, FX market volatility is expected to increase later in the week due to the release of the FOMC minutes, a high-impact event scheduled for Wednesday.
Traders are eagerly awaiting the minutes for insights into the central bank's view on inflation and the potential timing of rate adjustments. Depending on the tone of the minutes, we may see either a boost in US Treasury yields and the dollar if immediate rate cuts are deemed unnecessary, or a pullback in yields and the dollar if policymakers show a greater inclination towards easing measures.
Setting fundamentals aside, let's delve into the technical outlook for key US dollar pairs:
EUR/USD Forecast - Technical Analysis:
EUR/USD continued its rebound from support near 1.0700, with resistance expected around the 200-day simple moving average at 1.0820. Further upside targets include 1.0890 and 1.0950. In case of a reversal, initial support levels are at 1.0725 and 1.0700, with a break below risking a decline towards 1.0650 and 1.0520.
EUR/USD TECHNICAL CHART
USD/JPY Forecast - Technical Analysis:
USD/JPY slipped below the 150.00 handle, with potential support at 148.90 and 147.40. Further losses could bring the 50-day simple moving average near 146.00 into focus. On the upside, a move back above 150.00 may lead to a retest of 150.85, followed by a rally towards last year’s high near 152.00.
USD/JPY TECHNICAL CHART
USD/CAD Forecast - Technical Analysis:
USD/CAD consolidated higher, distancing from its 200-day simple moving average and trendline support near 1.3480. Resistance levels to watch include 1.3545, 1.3585, and 1.3620. Conversely, support lies at 1.3480, with a breakdown potentially leading to a decline towards the 50-day simple moving average at 1.3415.
USD/CAD TECHNICAL CHART
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