Daily Market Reports | Amana Capital
EURUSD took out the psychological level of 1.19 as the Fed surprised with a hawkish message. The EURUSD is now challenging the 1.1865 level which is the next support level.
Below the 1.1865 level, the next level support level is the August 31 low of 1.1820.
A likely near-term resistance level is the psychological level of 1.1950, followed by today's high of 1.2030.
EURUSD 1-hour Chart
NZDUSD spiked lower following today's FOMC meeting, but after reaching a low of 0.7315, the price has stabilized. Near-term support levels are 0.7302 followed by Monday's low of 0.7244. The nearest resistance level is today's high of 0.7434.
With the latest Fed rate decision looming, the market has been relatively quiet, as traders wait for the Fed's decision on QT and interest rates.
To help you understand the potential outcomes of the FOMC and its impact on the markets we have prepared a special video for you, covering the top things to be on the lookout at the rate meeting and which levels to watch for currencies such as EURUSD and USDJPY.
GBPUSD had at the time of writing, traded lower by 138 pips from last week’s high of 1.3621. This move is unsurprising given the previous week’s strong gains and traders booking partial profits on long positions is probably the reason for the decline in price.
Traders will probably see corrections of 50% to 61.8% of the rally from 1.3145 to 1.3621, as an opportunity to add to their bullish GBPUSD positions as the overall trend is bullish above the September 14 low of 1.3145.
The trend is bullish above the September 14 low of 1.3145 as it is a higher low compared to the prior swing low of 1.3031 formed on September 7. On price trading below the September 14 low of 1.3145, the short-term trend might turn bearish.
GBPUSD Gives Back Parts of Last Week's Gains
The price of gold turned short-term bearish following the break to the September 14 low of $1319, and the trend will remain bearish as long as price trades below the September 15 high of $1335.
The trend is bearish below the September 15 high as it is a lower high relation to the September 8 high of $1358.
The next support level is the August 31 low of $1297, while the $1318 level is the nearest resistance level.
Gold Price: 1 Hour Chart
GBPUSD upholds its bullish trend heading into today’s BoE rate meeting at 12:00 London time. But caution is warranted given that volatility tends to be high and the markets are prone to false moves during rate meetings.
The short-term trend defining level is Monday’s low of 1.3155, and as long as price trades above this level the price might reach last week’s high of 1.3330. On a break to Monday’s low, the short-term trend could turn bearish, and price might reach the September 6 high of 1.3083, followed by the September 6 low of 1.3031.
For more on the today’s rate meeting read: BoE to Stay Pat; Saunders, McCafferty to Vote for 25 Bps Hike