8DC FX

Technical Update for GBPUSD, EURUSD, USDJPY

June 15 2022

After hitting a low close to 1.1930 the Pound has recovered well to test resistance this morning at 1.2040/50 a break here would see a continuation of the upside towards 1.2080/1.2100 resistance.

Support will now be found at 1.1980/70 a break down here will see renewed selling pressure to test the recent lows.

Support held well at 1.0400/1.0390 and the EURUSD has recovered this morning to test resistance in the 1.0450/60, a break up here will see further gains to 1.0500/1.0610.

Failure to overcome 1.0450 will see the market reverse and test 1.0390 and possibly lower to our target of 1.0340/30.

Tonight’s FOMC policy announcement is expected to have a profound effect on the USDJPY.

However, in the short term we have to ask is much of this priced in already, with the USDJPY finding some resistance at 135.50/60.

The market has been trading as if a 0.75% rate hike is a done deal. It is possible that a 0.5% hike would be a disappointment, triggering some profit taking on long dollar positions.

Ahead of tonights meeting there is support for the USD at 134.90/80 and again at 134.40/30.

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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