That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
EUR/USD is Ready for Reverse, Amazon's Poor Results
- The US has published the worse-than-expected Advance GDP report. The Advance release is the earliest and thus tends to have the most impact. US unemployment claims and pending home sales fell short of analysts’ forecasts too. The USD dropped yesterday, but today started reversing up.
- Nasdaq 100 dropped more than 1% as Amazon released less than expected sales and revenue. It signaled that Amazon’s rapid growth through the pandemic waned, that’s why investors started selling the stock. However, Amazon is well-positioned in the long term, that’s why wait for the stock to slide a bit more and consider buying the dips.
- Stock prices are volatile this week amid China’s pressures on its big-cap companies and earning season. The Fed’s expansive monetary policy continues to support broad market sentiment after Jerome Powell claimed the central bank will pare back stimulus gradually and if the US economy makes enough progress.
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up. The 1.1870 level was acting as resistance before, but now this level has become support. Moreover, there is a 200-period moving average below it, making this level even harder to break. Thus, there is a high probability that the pair reverses up. If it crosses the psychological mark of 1.1900, it may jump to the 38.2% Fibonacci retracement level of 1.1950.
Gold has reversed down from the 50.0% Fibonacci retracement level. It’s moving down to the 200-day moving average at $1820. The move below it will open the doors towards the 38.2% Fibonacci retracement level of $1815. On the flip side, if the yellow metal breaks above the $1833 resistance level, it will rally up to $1850.
Now is the best time to trade XBR/USD (Brent oil). It’s moving back and forth inside the ascending channel. Now it reversed down from the upper trend line and it’s likely to fall to the lower one at $74.00. After that, it will bounce off the lower trend line and reverse up.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
Germany, the leading economy in the Euro Zone, will reveal one of the key economic indicators – German Ifo Business Climate on September 24 at 11:00 MT time.
On Wednesday, September 22, Microsoft will be holding a product launch. The event starts at 18:00 GTM + 3.