The FOMC price resolution will happen later at 2 PM with the Fed anticipated to maintain charges unchanged. Nonetheless, there’s a variety of uncertainty from the main points together with the assertion, the Fed Chair Powell feedback, the “dot plot” and the measures of inflation, GDP, and employment from the central tendencies.
How all these “ingredients” make the “bullish or bearish brew” is as much as the market’s interpretation and that can present itself within the value motion. If the Fed is extra dovish, the USD ought to go decrease. If the Fed is extra hawkish (or much less dovish), the USD ought to go larger.
Merchants can measure the extent of bullish or bearish by making use of technical instruments. Breaking technical ranges by definition both will increase the bullish or bearish sentiment. Figuring out the place the degrees are, is crucial clue merchants can have. They supply the roadmap for merchants.
On this video, I take a deep dive into the AUDUSD and outline the bias, and the targets that may should be damaged to extend the bullish bias or enhance the bearish bias. The next targets exterior of the preliminary breaks. These ranges are additionally danger ranges for merchants via the fireworks from all of the “ingredients”. If the worth of the AUDSD strikes above a key upside goal, it turns into a cease stage for shorts too.
We do not know hand the Fed could play immediately. We will have concepts, or “think” we all know. What we do know is that if “this level is broken – and stays broken”, it will increase the bullish or bearish bias (depending on the course of the break).
Understanding the roadmap will go a good distance towards success via key market-moving occasions.
AUDUSD trades in a spread between the ground and ceiling
