What to Trade on August 22–26?
How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
Trade ideas ahead of Fed
Latest news
The market optimism waned ahead of the Fed meeting: stock indices dropped, gold and the USD rose.
Investors await comments from the Fed about inflation risks and increasing Treasury yields. The central bank should update its outlook for rates and the economy. This meeting may set new traction for the US dollar and stocks.
Gold is climbing up to close the second week in green. The yellow metal is driven up by prospects for higher inflation.
Oil prices dropped on concerns over weak demand from Europe. The Euro Area slowed down the vaccination campaign because of the possible side effects of AstraZeneca’s vaccine.
Technical analysis
EUR/USD is getting closer to the 50-period moving average of 1.1915. The move above it will clear the way up to the upper trend line of 1.1935. On the flip side, the move down the intraday low of 1.1890 will press the pair down to the next support of 1.1870.
GBP/USD is at the resistance of 1.3900. if it manages to break it, the doors to the 38.2% Fibonacci retracement level of 1.3950 will be open. On the flip side, the move below the support of 1.3850 will drive the pound down to the key psychological mark of 1.3800.
USD/JPY hit the 200-week moving average of 109.50. The RSI indicator went slightly above the 70.00 level, indicating the price is too high. Thus, the pullback down is going to happen soon. If it drops below the closing price of the last week at 108.35, it may dip to the 100-week moving average of 107.20.
Gold is moving in an ascending channel. If it breaks through the 100-period moving average of $1740, it may rise to the next resistance of $1750. In the opposite scenario, the way down the recent lows of $1725 will drive gold to the 50-period moving average of $1712.
Follow the Fed statement at 20:00 MT time, big swings are awaited!
Similar
Market Outlook For February 21-25
Last week was full of surprises! The US dollar plunged despite a better-than-expected retail sales report…
What will move the market on February 14-18?
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Latest news
Assets Won’t Survive This Week
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Post-Fed Releases for USD & CAD Traders
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
FED and BOE Make Another Attempt to Beat Inflation
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
