Markets Unmoved Before FOMC Meeting

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Markets Unmoved Before FOMC Meeting
Markets Unmoved Before FOMC Meeting

Markets Unmoved Before FOMC Meeting

The euro remained unmoved all day yesterday where it played in a very short range of 30 points even the German ZEW Economic sentiment came much better than expected for the previous month. However, on the other note the trade balance of the Eurozone was disappointing as it fell down to 11.1 billion against the expected figure of 15.3 billion.

Currently the euro is trading at 1.3354 against the U.S. dollar where a move below 1.3329 could take the pair down to its next support levels of 1.3312 and 1.3293, breaking of which could show 1.3275.

On the upward side, if it manages to make a move above 1.3384 then its next targets would be 1.3401 and 1.3419.

The GBP/USD had a bearish pressure on it all day on Tuesday where it lost nearly 20 points but remained in a short range, as the inflation numbers neither delighted nor disappointed the investors. The pair has a very strong resistance at 1.5915 and 1.5938 level, breaking of which could take the pair up to 1.5959 that is its Monday’s high.

Provided that it manages to break its support level of 1.5887 then it would start falling sharply and can hit its support levels at 1.5866 1.5843 and 1.5819.

FOMC Meeting

The investors are waiting for the very crucial and much awaited FOMC meeting that is to be held today later in the U.S. session, where FED members are expected to vote for tapering the stimulus plan eventually. This has been in the news for the past two months where all eyes would be on as to when the easing plan would be ended, rather than the reduction in quantity of it.

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Gold Bearish – More Potential to Fall

Gold is trading in a bearish channel but still surviving just above its psychological support level of 1300, where a move below 1296 could allow the bears to drag it down to 1281 1275 1264 area. Gold market is expected to fall if the FED approves the tapering plan for its stimulus it started last year.

Market would remain sluggish until the start of the U.S session, so following technical levels is also necessary or else losses could be incurred if any type of manipulation happens after the FOMC meeting.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com