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Euro US Dollar
It was a mildly bullish start to the day for Euro as the U.S. dollar index retreated after the release of the Fed’s latest policy meeting minutes on Thursday. At the time of reporting, the EUR/USD was up by 0.42% to the 1.0720 level. The pair remains vulnerable to a drop towards the 1.0700 level on strong economic data from the USA.
From a fundamental perspective, interest rate hike expectations from European Central Bank supported the rally and EUR/USD reclaimed the 1.0700 level. EUR/USD would need to pass through the 1.075 weekly pivot level to support a medium-term rally towards the first major resistance level at 1.0800.
US Dollar Japanese Yen
The US Dollar extended its decline below the 128.00 and 127.00 support levels against the US Dollar this week and is trading inside a bearish channel in the medium-term. The potential fear of recession due to aggressive rate hikes from the US federal reserve is acting as a bearish catalyst for the USD/JPY.
The U.S. Dollar Index, which measures the value of the U.S. dollar against the basket of major currencies, fell 0.2%. If the bears succeed in taking control of the recent low of 126.50 level, there is a risk of a sharp decline. However, if the price returns above the next immediate resistance of 128.00 level, then this will attract more buyers.
Australian Dollar US Dollar
AUD/USD is trading in a tight range for the last few sessions and is practically directionless on Thursday despite a dip in the US Dollar index. The price started a major rally from the 0.685 level last week amid the strong economic data.
However, In the past three days, AUD/USD experienced a decline in buying presence and entered a consolidation phase. On the downside, the nearest support level is located near today’s low at 0.705. Bears tried to breach this level several times this week but so far, they have not succeeded.