Last week saw the development of an upward correction in currency pairs such as EUR/USD, GBP/USD, USD/CAD, and USD/JPY. At the start of the current trading week, the pressure from dollar sellers slightly eased, and if the Fed delivers a favourable verdict for the US currency, this corrective movement may come to an end.

EUR/USD

As anticipated a week ago, EUR/USD buyers managed to extend the upward correction to the key range of 1.0540–1.0500. However, they have so far failed to consolidate above 1.0500. With a corresponding news-driven impulse, the price may decline towards 1.0370–1.0300.

The technical analysis of EUR/USD indicates a potential end to the upward correction and a resumption of the main downward trend, as a "bearish engulfing" pattern has formed on the daily timeframe. A strong consolidation above the recent highs at 1.0540 could invalidate the bearish scenario for the pair.

Key events that may impact EUR/USD movements:

• Today at 10:00 (GMT+2): Germany's Consumer Climate Index (Gfk)
• Today at 22:00 (GMT+2): US Fed Interest Rate Decision
• Today at 22:30 (GMT+2): Fed Open Market Committee Press Conference
• Tomorrow at 10:00 (GMT+2): Germany's GDP Data

USD/CAD

Despite an abundance of news and increased volatility in other pairs, USD/CAD continues to trade within a narrow six-week range between 1.4450–1.4270.

At present, the price is trading near the upper boundary of this range. A breakout and consolidation above 1.4450 could lead to further growth of USD/CAD towards the 2020 highs at 1.4670–1.4600. A rebound or false breakout at 1.4450 may result in a retest of 1.4300–1.4270.

Key events that may influence USD/CAD pricing today:

• Today at 16:45 (GMT+2): Bank of Canada Monetary Policy Report
• Today at 17:45 (GMT+2): Bank of Canada Interest Rate Decision
• Today at 18:00 (GMT+2): US Crude Oil Inventories

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