Hedge funds Sell USD ahead of the FOMC meeting

Hedge funds Sell USD ahead of the FOMC meeting

2023-07-25 • Updated

Recently, gold prices settled by -0.41% at 59309 as the dollar and bond yields rose. However, hopes for a pause in US rate hikes limited the decline after the July meeting of the Federal Reserve. The unexpected drop in new claims for unemployment benefits in the US also contributed to the market sentiment.

Physical gold demand in India stalled due to monsoon rains and higher domestic prices, while in China, bullion was sold at high premiums. Indian dealers offered discounts of up to $6 an ounce over official domestic prices, and in China, gold changed hands at premiums of $9 to $17 an ounce. Swiss gold exports fell 23% in June due to lower shipments to China and India. Let’s take a look at the technical analysis.

US Dollar - D1 Timeframe


The US Dollar ended the last week with a bullish run all through the week, in a move that seems to be set to continue even further. We see the price sharply pull away from the demand zone on the charts as it heads toward the 50 and 100-period moving averages. The implication is that we are bound to see the bullish move continue until it finds a credible resistance from the moving averages and resistance trendline.

Analyst’s Expectations: 

Direction: Bullish

Target: 102.381

Invalidation: 101.174

EURUSD - D1 Timeframe


The price action on EURUSD has recently broken out of the wedge and seems to be heading toward the trendline and moving averages in search of support. It is important to note the bullish array of the moving averages to indicate what is most likely to occur once the price reaches the support area. In the meantime, we remain bearish.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.09637

Invalidation: 1.10901

GBPUSD - D1 Timeframe


GBPUSD made a huge dump from the pivot supply zone on the daily timeframe. However, the current state of the price action suggests that the price may be heading for the support trendline with a confluence from the 50-period moving average. The trend remains bullish, though, so it would be smart to exercise a sizable degree of risk management on this idea.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.27373

Invalidation: 1.28905


The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.


You can access more of such trade ideas and prompt market updates on the telegram channel.


CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

Trade of The Week: AUDNZD Trade Breakdown
Trade of The Week: AUDNZD Trade Breakdown

The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera