Forex Signals Brief for Jul 29: FOMC in Focus
Rowan Crosby • 2 min read
US Market Wrap
Markets were a little wobbly yesterday as traders and investors began to take their foot off the gas.
After another solid start to the week, the SPX gave up some ground along with the NASDAQ on the back of some mixed earnings. Meanwhile, the USD remains soft at the moment, but that didn’t underpin GOLD any further which has started to look a little overextended.
The GBP/USD was a strong performer yesterday on the back of some positive data, however, markets appear to be waiting for more information on stimulus measures before attempting another run higher.
The Data Agenda
Today’s session will be all about the FOMC but in many ways, there appears little room to move for Jerome Powell and his men.
Despite COVID cases still rising, the FOMC is not looking all that urgent with any additional measures, so it appears they are happy to keep on waiting things out.
Meanwhile, the back and forth around the US Government stimulus measures are still going on with little progress being made.
Otherwise, the main data points of the day will be pending home sales in the US and WTI crude oil inventories.
Forex Signal Update
The FX Leaders Team didn’t close any green signals yesterday but we hunting some opportunities in the key commodities and the majors at the moment.
Gold – Pending Signal
The GOLD trade has finally slowed down a little bit and the charts look a bit toppy. If price makes a lower high, that could be the trigger for a short – albeit a tricky one to execute.
EUR/USD – Active Signal
The EUR/USD is pushing higher but has pulled back in the last 24-48 hours. We need to watch price around the 1.1700 level as it is key now. We are short looking for short-term weakness.
BTC has been in focus this week, after the break of $10,000, however, it looks like price has run out of steam now.
Currently, we can see price rotating around $11,000, so for me, a break of this range is the play here. While technically, this could be seen as a bullish pattern, traditionally Bitcoin doesn’t always follow through after the big break comes.