Forex Signals Brief for Nov. 1: Will the FOMC Rally the USD? - Forex News by FX Leaders

Forex Signals Brief for Nov. 1: Will the FOMC Rally the USD?

Posted Wednesday, November 1, 2017 by
Rowan Crosby • 2 min read

Welcome to a big day guys,

It’s FOMC day and I think we might be in for some fireworks. The talk around is that the US will hike rates in December. If there’s a mention of that in today’s update then expect the USD to fire up and that means the majors are going to be active.

The markets have been well aware of the potential rate hike and we have been capitalising on some of those trends with our fantastic run of forex signals in the last few weeks.

Yesterday was another great day going three for three, with winners in Gold, the Nikkei and the NZD/USD. It’s been a great run for FX Leaders are our followers, so here’s hoping for more to come.
 

Today’s Forex Signals Watchlist

EUR/USD – The Euro has pulled back and consolidated around 1.1650. This is looking like good resistance.

USD/JPY – If we get a positive outcome from the FOMC expect 114.00 to be taken out.

GBP/USD – The pound is strong, however, the FOMC will rally the USD.

NZD/USD – The Kiwi has rallied after strong employment data, however, the FOMC might push it back down.

Gold – If the USD rallies, gold will likely sell-off.

S&P 500 – The SPX has rebounded after weakness earlier in the week, and we will look to buy dips.

 

Top Trade Ideas

 

EUR/USD – Consolidating Ahead of the FOMC

The EUR/USD has fallen away significantly in recent weeks, thanks in part to the ECB and in part to a stronger USD. Ahead of the FOMC today, I think we need to keep trading with the momentum. If we get a spike higher I still feel that is a buying opportunity. Rates will be rising in the US, so it’s just a matter of what time frame we look at. If we hear no mention of potential rate rises, then the USD might fall and this will be a selling opportunity above 1.1660.

 

EURUSD

EUR/USD – 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1.1600

1.1650

1.1576

1.1660

1.1500

1.1700

 

Gold – The Slide Continues

Gold has fallen away sharply and there have been a number of successful short signals, thanks to some great work by Skerdian our lead analyst. If the USD continues to rally then I suspect this trend will continue in gold. There are good opportunities to short at overhead resistance at 1276 and 1280. Gold will bear the brunt of any rally in the USD making it a great one to watch today.

 

Gold

Gold – 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

1265

1276

1260

1280

1255

1283

 

Top Economic News Today

The main event of the day is the FOMC interest rate decision and accompanying statement will be released at 18:00 GMT. There’s a strong chance this will dominate market action in the majors today so expect things to be quiet until then.

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About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
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