Gold dropped, market awaits Fed meeting on Wednesday

Gold dropped, market awaits Fed meeting on Wednesday

What you need to know on Monday:

  • Bitcoin rose to almost $40,000 after Elon Musk said that he would allow paying for Tesla in Bitcoin if mining is done with more clean energy.
  • The USD is going to be in the spotlight again this week as the Federal Reserve will hold a meeting on Wednesday, which could be a big mover! Most analysts expect the central bank to stay dovish. Still, the Fed can project an interest rate increase in 2023, which will be positive for the USD.
  • Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
  • The oil keeps rallying up. XBR/USD (UK Brent oil) has reached the level unseen since May of 2019!
  • UK Prime Minister Boris Johnson is expected to delay the economy reopening, which can negatively impact the pound.

Technical outlook

EUR/USD is moving inside the descending channel. If the pair drops to the mid-May low at 1.2060, it’s likely to reverse up from that level as 1.2060 is a quite strong support level, which the pair has failed to cross several times already. The breakout will open the doors to the early-May lows at 1.2000. On the flip side, if it jumps above the high of June 3 at 1.2130, it may rally up to the 200-period moving average of 1.2150.

EURUSDH4.png

In the long term, GBP/USD is moving in an uptrend inside the descending channel, nicely supported by the 100-day moving average. In the short term, it’s trading back and forth inside the horizontal corridor. Thus, there are two possible scenarios. The pair breaks the 1.4085 support and drops to the lower trend line and the 50-day moving average of 1.4000, which it’s unlikely to cross on the first try. The pair may reverse up at that level. In the opposite scenario, the move above the 1.4200-1.4250 resistance zone will drive the pair to the next round number of 1.4500.

GBPUSDDaily.png

XAU/USD has dropped below the lower trend line. The 200-period moving average of $1855 should stop the metal from falling deeper. So, we might see the reverse up from that level. The breakout may push XAU/USD to May lows of $1825.

XAUUSDH4.png

TRADE NOW

Similar

News for The Week
News for The Week

US stock markets started falling, while the US dollar is rising. What to expect from

Latest news

The US Dollar Is Correcting
The US Dollar Is Correcting

Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?

Bearish Signal For The USD
Bearish Signal For The USD

XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!

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.

Callback

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