The EUR/USD, GBP/USD, and USD/JPY currency pairs saw a recovery following remarks from Federal Reserve Chair Jerome Powell, who indicated that the central bank is not in a hurry to implement further interest rate cuts. The statement provided support to the U.S. dollar while leading to notable price movements in major currency pairs.
EUR/USD Targets Key Resistance Levels
The EUR/USD pair is in a recovery phase, aiming for the 55-day simple moving average (SMA) at $1.0405 and the tentative downtrend line from September to February at $1.0442.
Support remains at this week’s low of $1.0281, with additional key levels between the $1.0224-$1.0178 range, representing the January to February lows.
GBP/USD Rebounds from Weekly Low
The GBP/USD pair is climbing toward the 55-day SMA at $1.2491, alongside the September-to-February downtrend line at $1.2502.
Tuesday’s low at $1.2333 serves as support, with additional downside levels at $1.2326 (January-February support line), $1.2307 (mid-January high), and $1.2250 (last Monday’s low). Resistance is expected between the $1.2524-$1.2550 range, aligning with the late January high and last week’s peak.
USD/JPY Resumes Uptrend
USD/JPY has rebounded from a two-month low, reclaiming its position above the 200-day SMA at ¥152.71, which is now expected to serve as minor support.
The pair is approaching the late January low of ¥153.72, with the next target at the 55-day SMA of ¥154.75. A sharp decline below last week’s low at ¥150.94 could trigger a test of the psychological ¥150.00 mark, with further downside risk extending to the August peak at ¥149.40.
Markets remain focused on upcoming economic data and Fed policy signals, which could drive further volatility in these key currency pairs.
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