EURUSD, USDJPY, GBPUSD, USDCAD reach key technical levels after Fed hike

The US dollar strengthened considerably after the FOMC announcement, driving EURUSD and GBPUSD down while pushing USDJPY and USDCAD higher. Each currency pair has arrived at an important technical crossroads.

The greenback rallied sharply on the Fed decision, and the move has now brought the major pairs to the next significant technical test.

EURUSD and GBPUSD declined, while USDJPY and USDCAD gained ground. The directional bias is apparent, but traders should not expect the initial trend to persist without interruption. Every pair is currently trading near a level or zone that will determine whether dollar bulls maintain their advantage.

The key support area for EURUSD is being tested

EURUSD fell sharply and is now testing a crucial support zone from 1.1471 to 1.1482.

That region comprises:

• The 61.8% Fibonacci retracement at 1.14719
• A swing region between 1.14715 and 1.14821

This represents a critical decision point for both buyers and sellers.

Buyers can use this zone as a support level, but they must push the price back above the 1.1499 to 1.1511 swing area. Above that, the 50% retracement at 1.15175 is the next upside target.

Should EURUSD drop below 1.1471 and remain under that level, sellers will gain more control. Downside targets beyond that include 1.14492, then 1.14352.

For the moment, sellers hold a stronger short-term bias, though the support zone provides buyers with a defined and limited risk area.

USDJPY remains above its breakout level

USDJPY advanced, breaking above the swing area between 155.04 and 155.21. The pair also trades above the 38.2% retracement at 155.748.

This gives buyers a short-term advantage, but holding above 155.748 is critical going forward.

If buyers can sustain above that retracement, the next upside target is the four-hour 100-bar moving average near 156.565.

If the price slips back below 155.748, the 155.04 to 155.21 area becomes the primary risk zone. A decline back under that level would undermine the bullish breakout and boost sellers' confidence.

Buyers are gaining more control, but they must demonstrate they can remain above the broken levels.

GBPUSD sellers gain stronger control

GBPUSD dropped below its 100-day and 200-day moving averages, tilting the technical outlook more decisively downward.

The key resistance levels currently are:

• 100-day moving average: 1.34407
• 200-day moving average: 1.34557
• 38.2% retracement: 1.34704

A move back above that cluster would be required for buyers to establish greater control.

On the downside, the price is testing a swing zone between 1.33947 and 1.34161. The price has dipped through that area, raising the downside focus toward the 61.8% retracement at 1.33445 and the lower swing zone between 1.33210 and 1.33407.

Sellers are in charge below the daily moving averages. Buyers must reclaim those levels to alter the technical picture.

USDCAD encounters resistance near 1.4000

USDCAD rose after the FOMC but encountered a resistance zone around 1.3990 to 1.4000.

That barrier consists of:

• A swing level at 1.39901
• The 50% retracement at 1.39915
• The natural resistance at 1.4000

This combination makes it a more significant ceiling.

Buyers need to push above 1.4000 and hold there to confirm the next bullish leg. A successful break would shift focus toward 1.40557.

On the downside, the initial risk area lies between 1.39480 and 1.39663. Below that, the 100-day moving average at 1.39308 becomes the next target.

USDCAD remains supported, but buyers still have work ahead. The 1.3990 to 1.4000 region is the technical barrier that must be overcome.

The initial move is just the first hint

Moving through a level is only the initial step. Staying beyond that level confirms that buyers or sellers are maintaining control.

That principle is particularly relevant after a major event like an FOMC decision. Prices can move rapidly through several levels as liquidity shifts and positions adjust. The better technical signal often comes from what happens after the initial volatility settles.

A level is a line. A zone is a battleground.

If price moves through a technical area and remains there, that supports continuation. If the price quickly returns through the area, the failed break can indicate rejection and a potential reversal.

The technical guide going forward

The dollar holds short-term momentum, but the next move hinges on confirmation:

• EURUSD: A sustained break below 1.1471 reinforces the bearish bias. A recovery above 1.1511 would give buyers some room to operate.
• USDJPY: Remaining above 155.748 keeps buyers in charge. A fall back below 155.04 would weaken the breakout.
• GBPUSD: Sellers stay in control below 1.34407 to 1.34704. The next downside focus is 1.33445.
• USDCAD: Buyers need to break and hold above 1.4000. A drop below 1.39480 would reduce the bullish momentum.

The post-FOMC move favored the dollar. The price action at these technical levels will now provide the next indication.