Levels for major currencies
The FOMC decision is at 2 PM ET. The Fed is expected to keep rates unchanged. The Chair and other officials have said that rates will stay low until inflation starts to trade comfortably above 2%. The Fed has indicated that inflation may go higher in the short term, but will be patient. They have also said that they will be transparent about their rate changes. Remember, the Fed has said that "they are not even thinking about, thinking about raising rates". That will not change quickly.. It may be quicker than projected but it is not soon.
Technically, some levels to eye and the reason are outlined below.
EURUSD: The EURUSD has bounced sharply off the low today which sniffed the January 18 low at 1.20529. The low today reached 1.20577. The run back to the upside has moved close to the 50% midpoint of the range since January 18 at 1.21209. The 200 hour moving averages at 1.21288. If the price can get above 1.2188 and stay above, look for a retest of the 100 hour moving average at 1.21517. A downward sloping trendline comes in at 1.2164. ON the downside, move below 1.2100 and traders will look toward 1.2075-80 area and then the low from Jan 18 at 1.20529
GBPUSD: The GBPUSD bounced off its 200 hour moving average at 1.3659 earlier today. That remains a key level below that if broken would be more bearish. Above that with the price currently at 1.37166 is the 100 hour MA at 1.3696 and a swing area between 1.3700 1.37088. Move below that area, tilts the intraday bias back to to the downside (if the price can stay below). On the topside, the swing high from Monday at 1.37228 (was near earlier session lows in the London /Asian session) would have traders looking toward the high from last week at 1.37446 and the high from today at 1.37582.
USDJPY: The USDJPY based today at its 200 hour MA and raced higher with the USD buying today. The high price stalled near swing highs going back to January 14. The buying ran out of upside momentum. The price has rotated back toward the January 19 swing highs between 104.04 and 104.083. Below that is the high from Mondays trade at 103.933. If the price can stay above Mondays high, the buyers should be undeterred. A move below, and we should see a rotation toward 103.857 and then the 100 and 200 hour moving average at 103.73 area.
AUDUSD: The AUDUSD bounced near the 2021 low earlier in the session and has bounced toward area and 50% retracement of the move down today at 0.7703. Move above and the 200 hour MA and 100 hour MA at 0.7720 and 0.7724 will be targeted. Stay below and traders will eye 0.7665 to 0.7669 folllowed by 0.7654 and 0.7641-43