The EUR/USD is on recovery mode early in today’s Asian session, after it slipped yesterday on strong US economic data. Despite the weakening of the dollar due to the Fed interest rate decision on Wednesday, there have been some positive news on its recovery. In particular was the decision by the Fed to cut its QE program by $10 billion, which signaled a continued recovery by the US economy. Despite the initial drop in the EUR/USD pair, however, it is currently on its way up again. It opened the Asian session at 1.3610, and is currently on today’s peak so far at 1.3620. Initial resistance for the pair is at 1.3656, followed by 1.3690. Meanwhile, initial support is at 1.3595, followed by 1.3561.
As for the AUD/USD pair, it has so far maintained the 0.9400 level for most of the past few days. This came after the drop in the pair’s value due to the dovish RBA minutes, and after the US released its own dovish statement on Wednesday. It opened today’s Asian session at 0.9398, and has peaked so far at 0.9414. It is currently trading at 0.9408, with initial resistance seen at 0.9416, followed by 0.9439. Meanwhile, initial support is at 0.9373, followed by 0.9349.
The GBP/USD reached its highest level in 5 ½ years due to the Fed’s decision to maintain rates at 0.25 per cent, while the Bank of England hinted at increasing rates, which, according to BoE Governor Mark Carney, “could happen sooner than markets currently expect.”
The pair peaked yesterday at 0.7058, before correcting itself later in the day. It opened today’s Asian session at 1.7038, and is currently trading at 1.7047. Initial resistance for the pair is at 1.7096, followed by 1.7139. Meanwhile, initial support is at 1.7008, followed by 1.6965.
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