We have almost covered, key vital areas, heading into FOMC, which is widely expected to be the meeting, where FED finally hike rates.
We in this post, finally cover some technical aspects - levels and resistances of key major pairs.
- EUR/USD - After ECB disappointment earlier in the month, there is high possibility of profit booking post-hike drop. Active call (given prior) - Buy Euro/Dollar at 1.09 and at dips, targeting 1.15 with stop loss around 1.05 area. Resistance - 1.11, 1.15 area, Support - 1.078, 1.05 area
- GBP/USD - Pound remains relatively weak, due to drop in BOE hike and inflation expectations. We remain committed to the downside in medium term, however Dollar booking could lead to some gains. Active call (given prior) - Medium term call - Sell GBP/USD @1.54 with stop loss at 1.58 area and target at 1.49 area, 1.47 and 1.42. Interim short term call - Buy Pound/Dollar at 1.506 targeting 1.528, 1.54, 1.56 with stop loss around 1.495 area. Resistance - 1.525, 1.535, Support - 1.49, 1.465
- USD/CHF - Franc's movement is highly correlated to Euro. We expect Franc to decline against Dollar in the longer term but gain in the short run. Active call (given prior) - Sell Dollar/Franc at 0.985 and at rally, targeting 0.95, 0.895 with stop loss around 1.03 area. Resistance - 0.992, 1.002, 1.03 area, Support - 0.98, 0.95
- USD/JPY - Yen remains a puzzle, trapped in BOJ easing, strong Dollar and risk aversion.
Important levels to watch out for Resistance - 122, 123.8 area, Support - 120.2, 118 area