The major pairs are working their way through the daily chart SMA areas, all at the same time, on a day that the market looks happy to be selling dollars. Ahead of U.S. GDP numbers at 08:30 EDT and the FOMC rate decision at 14:15 EDT there may be plenty of price action. How far that price action gets may come down to whether equity markets move and hold; long stock moves will equate to a weaker Usd, and vice versa.
Right now the London price fixings on oil and gold are being absorbed, and at 06:00 EDT the Libor rate setting will impact things TheLFB-Forex.com Trade Team said. The Fed have created dollar liquidity and addressed the issue that froze the credit pipes, that should lead to market stability and economic growth in the near-term, and a sense of financial normality.
The cost of the excercise will be seen in the value of the dollar going forward. Once equities have seen to have based, and the market is accepting risk, the Usd may start a move lower. Today may be pivotal in that longer-term dollar valuation move, and we will cover it in the signals delivered.
The main price points, going into the U.S. futures market open, look to be; Euro holding the 100 day SMA at 1.3200. Swissy breaking the long side of 1.1420, the 100 day SMA, or the short side of 1.1350, the 200 day SMA. The long aussie test of 0.7250, the 200 day SMA, using the 20 day SMA at 0.7160 as support. Cable using 1.4540, the 100 day SMA, and 1.4740, the 20 day SMA, as support.