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USD Drops After FOMC Then Gains After Info From China

USD Drops After FOMC Then Gains After Info From China

Jerome Powell delivered what everybody wanted to hear and nothing beyond that. We got an expected cut and a reasonable, ‘medium’ outlook for the future. No clear hints about the next movements from the FOMC though. Dollar weakened and stocks went higher, which is rather a typical reaction for the anticipation of a rate cut, rather than rise.

The instrument, which used the yesterday event in its favor is Gold. The price bounced from the 1480 USD/oz support and the upper line of the flag, which in this case was used as a support. The last two daily candles on Gold looks promising and we can expect, that the price will aim 1518 USD/oz, which can be considered as the closest resistance. The sentiment is positive.

Now, two pairs from antipodes. AUD/USD will go first. Aussie managed to break the neckline of the nice inverse head and shoulders pattern. At the same time, we attacked the long-term down trendline. The second one is still under pressure but information from China is definitely not helping. The daily chart gives us a shooting star pattern, which can be a trigger to the bigger selloff.

NZD/USD also has an inverse head and shoulder pattern but here still without the breakout. Interestingly, the head of this pattern is created from a smaller iH&S. We can say that Kiwi really loves this structure. 0.643 is an ultra-important resistance right now and buyers are fighting to change it into support, which could give them a sweet long-term buy signal.

USD Drops After FOMC Then Gains After Info From China

Axiory Analysis

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