Markets Turn Their Attentions To FOMC Interest Rates Decision For July
AvaTrade | Jul 25, 2017 06:04AM ET
Summary:
- USD and most of the majors traded sideways yesterday with little markets impacts from PMI reports.
- Oil bounced off lows and surged over 100 pips as initial reaction to OPEC meeting.
- Fed is set to hold two-day meeting today, focusing on policy statements from FOMC on the early hours of Thursday morning, Beijing time.
Forex markets mostly traded sideways in the previous session (Monday, 24, July) with muted reactions to intraday economic releases. U.S. Markit manufacturing PMI, non-manufacturing PMI and composite PMI, which were all better than expected, gave USD a boost as several FED officials commented that growth in PMI data regained some momentum and kept pace with FED’s inflation goal. However, those PMI data were not strong enough to help USD broke above its descending trend line resistance on its 1 hour chart.
Technical
The Dollar Index (DXY) whipsawed in most part of the session with limited upside room. Its short term moving averages flattened after converging below its long term moving averages, which remained diverging steadily with bearish bias and watch potential intraday pull-back below these resistances.
Non-U.S. currencies
Euro small and short-term corrective decline found supports at rising trend line on its 1 hour chart. Keep an eye on the effectiveness of H1-period EMA60 as a support and watch if price action in the euro could bounce off the support. The pound fell back slightly as it reached 61.8% Fibonacci level of previous decline around 1.3050 as a resistance and failed to break above the level before bouncing back. Its intraday support stands at H4-period EMA30 and resistance remains at 1.3050. The Australian dollar pulled back after surging upwards, trading at relative highs within a consolidation range on Monday. The commodity currency’s intermediate pull-back could test its rising trend line support on the 4 hour chart, targeting next support circa EMA30—EMA40.
Get The News You Want
Precious metals
Gold rebounded and formed a new high since its rally at 1258.53 in European session before dropping in choppy New York session. Its short term moving averages moved downwards after converging and touched its long term moving averages which remained divergent with bullish bias as supports today.
Keep an eye on its short term moving averages and watch if they could turn higher again.
Disclaimer: The views and opinions expressed in this article are those of the authors and for the purpose of reference only, and shall not be relied upon by investors in making any trading decisions.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.