After the recent interest rate cut, the US dollar has been experiencing some interesting price movements against major currencies like the Japanese yen, Euro, and British pound. Let’s take a look at the setups for USD/JPY, EUR/USD, and GBP/USD.
USD/JPY: The US dollar has been showing strength against the Japanese yen following the rate cut. Traders are closely watching the 108.50 resistance level. If the dollar can break above this level, we may see a further uptrend towards 110. On the other hand, a failure to break above 108.50 could signal a potential reversal back towards 107.
EUR/USD: The Euro has been weakening against the US dollar, with the pair testing key support at 1.1050. If this support level is broken, we may see a continuation of the downtrend towards 1.1000 and potentially even lower. However, if the Euro manages to hold above 1.1050, we could see a bounce back towards 1.1100 resistance.
GBP/USD: The British pound has been volatile against the US dollar, with Brexit uncertainties weighing on the currency. Currently, the pair is hovering around the 1.2200 support level. A break below this support could lead to further losses towards 1.2100. On the other hand, a bounce above 1.2200 could signal a reversal back towards 1.2300 resistance.
Overall, the US dollar price action against these major currencies will be closely watched in the coming days as traders react to the recent rate cut and other economic developments.