USD Mixed As The Forex Prepares For The Fed
The Greenback is trading mixed vs the majors one day ahead of March’s Fed meeting. With only a few hours left in the forex session, the EUR/USD (-0.20%), USD/CHF (-0.15%), and USD/CAD (0.04%) are trading flat. All in all, it’s been a quiet start to the forex week.
One of the great things about active trading is that the markets very rarely stay the same. Although today’s action is modest, things are due to pick up in the coming 48 hours. Here’s a quick look at what’s on tap for Tuesday and Wednesday:
- The Fed’s March meeting is scheduled to begin tomorrow and conclude Wednesday. Although no policy moves are expected, traders will be watching Jerome Powell’s tone closely. Questions regarding rising bond yields and the FOMC’s COVID-19 projections will be front and center.
- Tuesday’s session is headlined by Retail Sales figures from February. Analysts expect the number to come in at -0.5%, well down from the previous release of 5.3%. Also, the Redbook report and Industrial Production numbers are due out.
So, right now there isn’t a whole lot going on in the markets. Of course, that’s soon to change. Be ready for business to pick up on the forex significantly in the next 48 hours.
Forex Traders Send The EUR/USD Lower
In a Live Market Update from last week, I talked about the current outlook for the EUR/USD. Not much has changed ― a short-term bearish bias is warranted as traders prepare for the Fed meeting.
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Here are two levels to keep an eye on for the next two days:
- Resistance (1): Daily SMA, 1.1997
- Support (1): March Low, 1.1835
Overview: At this point, it looks like the 1.2000 handle is shaping up to be a key resistance level for the EUR/USD. As long as pricing remains beneath this point, another challenge of March’s Low (1.1835) is likely. In the event we see rates continue to slide, a long trade opportunity may set up later in the week. As always, stay tuned for details on how to get in on the action!
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