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Forex Recap - USD Squeezed Ahead of the FOMC Minutes

We had somewhat of an exodus from the USD during the 4/8 session as the greenback fell across the board. We saw the weakness against EURGBP and CHF.

Let's take a look at USD/JPY, USD/CAD, AUD/USD, and XAU/USD (gold).

USD/JPY slid sharply and in just a couple of sessions, reversed all the gains from the previous 3 weeks from 101.20 to 104.12. As it nears 101.50, and as the 4H oscillators dip lower into the oversold zone, we might expect some near-term support, especially with the FOMC meeting minutes looming ahead on Wednesday.

(usdjpy 4H chart, 4/8)

USD/CAD continues to push below 1.10 and is testing the February low of 1.0910. We might see some support here around 1.09, with oversold condition and the FOMC event risk ahead. It looks like the USD/CAD exhausted after a push to a new 2014 high. A break below 1.09 sets up for a bearish outlook.

(usd/cad 4h chart, 4/8)

AUD/USD pushed to a new high after the false double top last week. It continues a bullish trend that started from the 2014-low of 0.8659, made on 1/24. There is a previous support/resistance zone between 0.9420 and 0.9450.

(audusd 4h chart, 4/8)

XAU/USD (gold) continued to push above 1300. The next resistance/38.2% retracement is in the 1317-1320 area. A break above 1320 opens up the 50% retracement at 1334 up to the 1342 resistance pivot. A return below 1294 however could hold off the bullish outlook.

(xauusd 4h chart, 4/8)