Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: Currency Market Daily Outlook

US dollar was trading weak and lost more than 50 pips yesterday ahead of Fed monetary policy meeting. According to the CME Fed watch tool, the probability of keeping rates unchanged at 45.8% from 37.7% yesterday and 25bps cut declined from 62.3 to 54.40. US dollar index hits a low of 98.19 and is currently trading around 98.28.

 

The precious metal is consolidating in a narrow range between $1480 and $1528 for the past two weeks. Any major movement can be seen only after the Fed policy. The major support for the day is around $1485 and any violation below targets $1475/$1469. It is currently trading around $1503.

 

The Brent crude oil prices lost more than 8% on hopes of recovery in Saudi output sooner than expected. It hits low of $63.52 and is currently trading around $64.57.  

 

US 10 year bond yield declined more than 5% after a jump of more than 30%.  Any hawkish comment from Fed chairman will push it further higher. It is currently trading at 1.800%. The yield curve inversion between US 10 year and 2-year has gone and spread narrowed slightly from 9 bps to 8 bps.

 

Daily Technical:

 

EURUSD:

 

Major trend reversal level- 1.1125

 

Near term support- 1.100/1.0930

 

Near term resistance – 1.1125/1.11750

 

 

USDJPY:

 

Major trend reversal level- 108.35

 

Near term support- 107.20/106.60

 

Near term resistance – 108.35/109.30

 

USDCHF

 

Major trend reversal level- 0.9978

 

Near term support- 0.9850/0.9770

 

Near term resistance – 0.9978/1.0030

 

USDCAD

 

Major trend reversal level- 1.3380

 

Near term support- 1.3300/1.3380

 

Near term resistance – 1.3180/1.3135

 

Gold

Major trend reversal level- $1480

 

Near term support- $1480/$1460

 

Near term resistance – $1525/$1555

 

WTI Crude 

 

Major trend reversal level- $63.50

 

Near term support- $58.10/$56.08

 

Near term resistance – $60.50/$63.50

 

Major Economic events for the day

 

Fed policy meeting - Wednesday (6 PM GMT)

 

Canadian CPI - Wednesday (12:30 PM GMT)

 

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.