The Dollar Strengthens in Anticipation of the Fed's Rate Decision

The current five-day period is as full as possible with important fundamental data. This morning, a meeting of the Bank of Japan and the RBA took place. Tomorrow, the Fed will announce its decision on the rate, and on Thursday, market participants expect a verdict from the Bank of England. Decisions by officials may determine the pricing of major currency pairs in the coming months. After all, most currency pairs have been trading in narrow flat corridors for a long time, and an increase in volatility can lead to the start of new medium-term trends.

GBP/USD

A week ago, pound buyers managed to update the high of December last year at 1.2830. The price almost reached 1.2900, but the pound bulls failed to continue the upward movement and test the psychological resistance level at 1.3000. The pullback from 1.2900 contributed to the formation of a reversal combination for selling bearish harami on the w1 timeframe. Technical analysis of GBP/USD shows that if this formation continues, the price may decline to recent extremes at 1.2530-1.2500. We can consider cancelling the downward scenario if we confidently consolidate above 1.2900.

Tomorrow, pay attention to the release of data on the consumer price index in the UK for February. At 12:00 GMT+3, the housing price index for the past month will be released.

USD/CAD

On the USD/CAD chart, the price continues to trade between the levels of 1.3600 and 1.3400. A temporary lull in the oil market and the absence of important fundamental data from both Canada and the USA do not allow the price to either strengthen to 1.3900 or decline to 1.3100. If American officials at tomorrow's meeting announce a continuation of hawkish policies, the pair may go above 1.3600 and continue to rise in the direction of 1.3900-1.3800. If Jerome Powell admits the possibility of a cut in the benchmark interest rate in the coming months, the price could retest 1.3400.

In addition to tomorrow's Fed meeting, today at 15:30 GMT+3, it is worth paying attention to the release of data on the consumer price index in Canada for February.

EUR/USD

Buyers of the single European currency failed to hold the level of 1.0900 as support and at the moment the price on the EUR/USD chart is trading slightly above 1.0850. A reversal sell combination is being formed on the weekly time frame; if confirmed, the pair may decline to 1.0700-1.0600.

Today at 13:00 GMT+3, we are waiting for data on the level of wages in the eurozone for the last quarter of last year. Also at the same time, the ZEW economic sentiment index in the eurozone for March will be published.

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