Forex Signals Brief for Nov 20: FOMC in Focus
Rowan Crosby • 2 min read
Markets have been somewhat subdued this week, with the focus clearly on what will happen today with the FOMC minutes.
To recap, the FOMC cut rates three times in a row, however, since that final reduction, it appears the tide has started to turn and it does look like they are going to be slowing down the easing bias.
At the last meeting, there were actually two members who disagreed with the cut, so that will be something else to look out for. There is some chance we won’t get much new information, but there should be some more colour around what exactly the members were thinking.
After hearing from Fed boss Powell last week when he testified in front of Congress, the FOMC’s status is now somewhat clear.
The SPX will be one to watch for today. With the low-rate environment fueling multiple asset classes, any hint of rising rates could be seen as a negative.
Forex Signal Update
The FX Leaders Team finished with one win from the only closed signal in the USD/JPY.
EUR/GBP – Active Signal
The EUR/GBP has been in a solid downtrend and has good resistance at 0.8600. We are short and hopefully, that level will provide plenty of selling pressure.
AUD/USD – Active Signal
The AUD/USD has rallied a touch despite the bearish news we heard yesterday in the RBA minutes. Our signal held on, but we will need to see a break of 0.6800 for this one to really head our way.
BTC continues to look quite weak and has now started to really consolidate at the lows.
Price has once again tested $8,000, before bouncing, but clearly, there is some more selling pressure building up.
Like I said yesterday, there would be a good opportunity to take a short position here on a break of that level, as we have really not seen a bounce of any kind. Really since price spiked back up to $10,000.