Weak USD, Gold and China's Stocks Recover

Weak USD, Gold and China's Stocks Recover

Latest news

  • The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes and said that although the US economy is making progress, it’s not enough to taper yet. As a result, the USD weakened and EUR/USD rocketed.
  • China’s government eased its pressure on the country’s companies and allowed local firms to go public in the US. The Hang Seng Index (HK50) surged after that report!
  • Biden’s $1 trillion infrastructure plan was approved by the Senate. It is good news for electric vehicles producers such as Tesla, Ford, and General Motors as $7.5 billion will be spent on electric vehicle charging stations.
  • Oil surged due to the declining crude oil inventories as it showed the increasing oil demand. Bitcoin is moving sideways around $40,000, holding this week’s recovery.
  • Facebook reported better-than-expected earnings results for the second quarter. However, it cautioned investors with a risk of slower growth because of Apple’s advertising regulatory changes. Pfizer rocketed after strong earnings data. PayPal posted mixed results but still closed in green.

Technical outlook

EUR/USD has broken above the upper trend line after the Fed’s dovish comment. The pair is getting closer to the 23.6% Fibonacci retracement level of 1.1870. The pair is likely to struggle to cross this resistance level. Be ready for the reverse down! Support levels are at the recent lows of 1.1835 and 1.1810. On the flip side, if the pair manages to cross 1.1870, it may rocket to the psychological mark of 1.1900.

EURUSDDaily.png

A similar situation has occurred on the gold chart. XAU/USD has closed above the 38.2% Fibonacci retracement level of $1855. Thus, there is a high probability that the price will rise further and reach the 50% Fibo level of $1833. Support levels are the psychological mark of $1800 and the 23.6% Fibo level of $1795.

XAUUSDDaily.png

The Canadian dollar gained from the rising oil prices. As a result, USD/CAD dropped. The pair is getting closer to the 1.2450 support level. If it manages to cross it, USD/CAD may fall to the low of July 30 at 1.2380. Resistance levels are the recent highs of 1.2600 and 1.2750.

USDCADDaily.png

TRADE NOW

Similar

Markets Ahead of Fed Meeting
Markets Ahead of Fed Meeting

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. 

Key Market Driver: FOMC Statement
Key Market Driver: FOMC Statement

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).

Latest news

German Ifo Business Climate
German Ifo Business Climate

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.

Deposit with your local payment systems

Be on top of your game

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!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

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