Wednesday, 26 July 2017

FOREX consolidates as FOMC rate decision is ahead.

Posted by Anonymous at 17:36 Labels:

The general market expectation does not imply a change in interest rates at this stage, but attention will be directed to the tone of US central bank statements. Traders hope to clarify when Fed starts its balance sheet operations. In the technical picture there are signs that current trend is weakening as consolidation may turn into correction.  
EURUSD – corrected from key resistance level around 1.1715
The EURUSD has been in a steady uptrend over the last month. However, the market has approached a key resistance zone near 1.1715, which is a major turning point and the upper level of the current middle-term range.
The trend still looks strong and we stay bullish. However, due to the approaching key resistance at 1.1715 and immediate pullback, the question has arisen if the current decline is the beginning of downward correction.  
For a while, market does not look eager to sell and otherwise it is dangerous to go long on current levels. However, the pair is trading tight today within 4 days range and made up a new four-day low - a little lower than $1.1615. A break lower of the $1.1600 area could see a quick downward impulse to $1.1570. A break of this level would likely be seen as a signal that the consolidation is turning into a correction.
The nearest support is located around 1.1570, the next one is 1.1475. The main resistance is the same 1.1715.
AUDUSD – upward sentiment eased as market met strong resistance level around 0.7965
AUDUSD moved higher last week after breaking up through resistance level of 0.7880 that is now the closest support zone and 23.6 level of FIBO extension. For the current week, market is trading in a consolidation mode. The resistance is now around $0.7970. Recent pullbacks above the $0.7870 keeps the consolidative tone intact. The technical indicators start warning us that the consolidation may turn into a correction if $0.7920 level can not be overcome. Near-term support is located 0.7825 and then around 0.7790.
Oil gained amid returned positive after OPEC meeting, however 50.5051 is a strong resistance zone
Yesterday oil gained from $48.63 to $50.85, despite the fact that the OPEC monitoring committee provided only to verbal comments and support, which previously had no special effect. However, news on Saudi Arabia's plans to reduce exports by 1 million barrels per day brought back longs in the market. Preliminary data from the API showed a decline in oil inventories. Today market expect official data on oil inventories from US Energy Department. The 51 level is the key support zone that will test the power of current upward momentum.
This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.

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