Markets ahead Fed’s meeting

Latest news

• The Fed will hold its first meeting this year on Wednesday at 21:00 MT time. No major changes are expected as the Fed doesn’t want to repeat the taper tantrum of 2013, which refers to collective reactionary panic that triggered a spike in US Treasury yields. To get ready, we highly recommend you to read our short article: “What does the first Fed meeting of 2021 have for the USD?”
• Nasdaq climbed up due to the ongoing earnings season. Microsoft reported better-than-expected earnings and set a fresh record. Today Apple, Facebook, and Tesla will publish their earnings reports after the market closing. Check earnings calendar
• Australia’s consumer price index of 0.9% exceeded the market expectations of 0.7%. The AUD modestly reacted.
• Crude oil modestly advanced higher, while gold started the say on the back foot. 

Technical analysis

EUR/USD

The most traded pair is trading sideways without any clear direction. The FOMC meeting this evening will set a fresh vector. If the pair manages to break above the 200-period moving average at 1.2190, the way up to the next resistance level at 1.2220 will be open. On the flip side, the move below yesterday’s low of 1.2130 will drive the pair down to the low of January 20 at 1.2100.

GBP/USD

The pound has approached the upper line of the Bollinger Bands indicator at 1.3740. Therefore, we can expect the pullback to the downside as the pair shouldn’t break 1.3740 on the first try. Support levels are at the recent lows of 1.3650 and 1.3600.

USD/JPY

USD/JPY is trading inside a descending channel. Since the upside is limited by the 50-period moving average and the upper trend line, we should expect further falling. The breakout below the low of January 21 at 103.35 will drive the pair lower to the key psychological mark of 103.00.

AUD/USD

Finally, let’s talk about the aussie. AUD/USD is trading inside the symmetrical triangle. Since the market sentiment is risk-off, the pair is going to dip in the near term. The move below the 100-period moving average of 0.7730 will drive the pair to the next support of 0.7710.

TRADE NOW

FBS Analyst Team

More by this author

Similar

23.11.2022 12:31 US Dollar Might Get Under Pressure After These Events

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.

21.11.2022 12:11 November 23: Heaven for Day Traders

This Wednesday will be heaven for day traders. A considerable number of events will make the market volatile. Don't miss it!

16.11.2022 12:06 Traders Should Know About These Releases

The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!

Latest news

29.11.2022 11:13 Chinese workers are on strike

  Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today!  Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…

25.11.2022 12:40 How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

24.11.2022 13:03 FOMC Minutes Brought Insights

Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…