The rebound yesterday came as buyers relied on the 100-hour MA for support and US dollar weakness during the North-American session enabled price to rise towards the 1.2500 handle.

In any case, like to the end of last week and the beginning of the current week, the upside move slows down because of running into key daily resistance from the 100-day MA at 1.2501 and the 38.2 retracement level @ 1.2502.

Despite the fact that price is backing off those levels a bit, buyers are ready to catching for a break higher and we may get one after the FOMC meeting today.

Also, today’s economic calendar contains UK CPI data, but the main focus remains on the Fed for Cable.

Rose Alice

About: Rose Alice

Rose Alice has a long experience as a currency analyst with a deep knowledge of the relationship between macroeconomics and currencies fluctuation.