Majors on Wednesday: The FOMC is Here
Rowan Crosby • 2 min read
The big day has finally arrived and forex markets are primed to hear what the FOMC is going to do. It feels like we’ve been waiting for months for this particular meeting as there has been so much hype surrounding the prospective rate hike in the US.
If indeed rates do increase, the USD has done a reasonable job of preempting the move. We saw further upside on Tuesday trade which weighed on many of the majors. The EUR/USD, in particular, has copped the brunt of this move and fortunately for our followers, it has been a real boost to our signals.
Meanwhile, the AUD/USD and NZD/USD rallied. And that came despite the strength of the greenback. There appears to be a little bit of a rally going on in these two at the moment, however longer-term the predictions are for more pain to come.
It’s a big day for forex traders so let’s see what the day brings.
AUD/USD – The AUD rallied on no real fundamental news. Perhaps following the Kiwi. It has provided a good opportunity to sell.
EUR/USD – The Euro continued to sell off across the board and followers managed to get four winners in EUR pairs yesterday.
USD/JPY – We have consolidated around 113.50 for the time being as we await the Fed.
NZD/USD – The Kiwi bounce has continued, albeit at a slower pace. Still looking to sell this one.
USD/CAD -The CAD is trying to test resistance at 1.2900, but can’t quite. Today might be the day for a break higher. But can it hold?
USD/CHF – The Swissy is still neutral as we wait on the SNB this week.
GBP/USD – I feel we can bounce off the 1.3300 level.
US Dollar Index (DXY) – The USD has ground higher for a number of days and the rate hike might just be all but priced in.