Dollar Muted To Fed Minutes
ORBEX | Feb 23, 2017 04:07AM ET
The U.S. dollar index was flat yesterday after the Federal Reserve published the meeting minutes from the January 31 -February 1 monetary policy meeting. The minutes showed that members discussed the rate hike and that it was closer than what many expected. "Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon," the meeting minutes showed. But it wasn't a surprise as the Fed Chair, Janet Yellen had already conveyed the Fed's message to the market in her testimony to the Senate Banking Committee that the central bank was looking to hike rates soon.
While the U.S. dollar turned flat on the day, gold prices continued to trade flat for six straight days with prices stuck near the $1240 - $1235 an ounce handle. Looking ahead, the economic calendar today is quiet with only the German final GDP figures coming out followed by the weekly unemployment claims during the U.S. trading session.
h3 EUR/USD intra-day analysis/h3EU/USD (1.0568) closed bullish yesterday after briefly falling to intraday lows of 1.0500 before attempting to pull back higher on the day. The 4-hour chart shows a possible descending wedge pattern that is evolving, which could mean that another decline is possible towards 1.0533, the lows from February 15. A higher low here is requiredin order to confirm the upside move in EUR/USD, which will now target 1.0600, followed by a test to 1.0645. Failure to bounce back above 1.0550 could, however, signal further weakness towards 1.0500.
h3 XAU/USD intra-day analysis/h3XAU/USD (1236.53):Gold prices were muted to the FOMC's meeting minutes yesterday, and price action has remain stubbornly flat near the 1240 handle for the past six sessions. This nearly flat price action could only mean that gold prices could be preparing for a big move in the coming days. Support to the downside remains at 1200.00, while resistance near 1250.00 are the key levels to watch out for. On the intraday charts, short-term support is seen near 1220 – 1217 region, which could see some short-term bounce if gold prices slip to this level.
h3 USD/JPY intra-day analysis/h3
Get The News You Want
USD/JPY (113.27) is seen consolidating within the broadening wedge pattern with attempts to rally being met with resistance. Price action was seen testing 113.00 support yesterday before posting a reversal, but the gains were short-lived. Still, the bias in USD/JPY remains to the upside with 114.38 resistance likeely to be tested in the near term. The lower support at 113.00 - 112.50 could continue to keep USD/JPY support to the upside, with the bias changing only on a close below 112.50.
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.