Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.
Gold and Bitcoin Rise, Fed is Eyed
- Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market. The central bank is expected to decide when and how to taper the current monthly bond purchases.
- Apple, Microsoft, and Google dropped amid the overall stock market sell-off even despite better-than-expected earnings results. This week’s drop of Chinese stocks is adding to the market uncertainty, with investors worrying over the economic recovery amid the Covid-19 resurgence.
- Oil is gradually recovering losses. Brent oil (XBR/USD) is just below the resistance level of $74.00.
- Bitcoin has skyrocketed but stopped ahead of the resistance level of $40,000 which lies at the 100-day moving average. If bulls take control and BTC/USD manages to cross it, it will jump to the 200-day moving average of $45,000.
EUR/USD is moving inside the descending channel. Since it’s in the upper part of the channel, the pair is likely to reverse down soon. However, where the price will head further hugely depends on the Fed’s decision this evening. If it hints at soon tapering, the USD will rise. Otherwise, if the bank stays dovish, the USD will fall. The move below the 100-period moving average of 1.1810 will open the doors lower to the 50-period MA at 1.1790. Resistance levels are at the recent high of 1.1835 and the next round number of 1.1850.
Gold has reversed up! It was trading sideways below $1815 for a while. If it finally manages to break the resistance zone of $1808-1815, it will rocket to the 50.0% Fibonacci retracement level of $1833. Support levels are at the recent low of $1795 and the 23.6% Fibo level of $1790.
Finally, let’s discuss GBP/USD. It has reversed down from the 50.0% Fibonacci retracement level of 1.3900. Thus, it may fall to the 38.2% Fibo level at 1.3830, where the fall should stop. On the flip side, the move above the 50.0% Fibo level of 1.3900 will open the doors to the next round number of 1.3950.
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