Dollar Demolished: The U.S. dollar (DXY) plunged below 102.00 on Thursday, its lowest since August, driven by a dovish surprise from the Fed. Rate cut talk in 2024 and 2025, exceeding September’s projections, sent Treasury yields tumbling and sparked a dollar selloff.

EUR/USD and GBP/USD Surge: With the dollar in freefall, EUR/USD rallied towards 1.1000, boosted by the ECB’s relatively hawkish stance. GBP/USD hit its strongest level in four months.

USD/JPY Falters: USD/JPY plummeted below its 200-day moving average, a bearish signal. This crucial support level needs to hold to prevent further decline towards 137.50.

Technical Analysis:

• EUR/USD: Bullish momentum could push through 1.1015 resistance, targeting 1.1090 and potentially retesting July highs. Below 1.0830 (200-day MA), support awaits at 1.0765.
• USD/JPY: Holding above 140.70 is crucial. A break below could trigger a slide towards 137.50, while a rebound faces resistance at 142.45 and 144.60.
• GBP/USD: Bullish bias remains. A sustained break above 1.2731 confirms rally resumption, with next target at 1.2909. Below 1.2651, bias turns neutral, but bullish outlook holds if 1.2499 support holds.

The Fed’s dovish pivot sent shockwaves through the forex market, punishing the dollar and boosting major currencies like EUR/USD and GBP/USD. USD/JPY remains vulnerable, while technical analysis offers potential trading opportunities in all three pairs.