Fed Interest Rate Decision Looms, USD Set For Temporary Gains.
The US Federal Reserve Bank is set to announce its interest rate decision on the 31st of January 2024 and the US Dollar has been trading mostly sideways since the 17th of January 2024, closing Friday and last week with an indecision candle.
Looking at recent price action, Friday's close was above the 50 Day EMA and we can expect the USD to move bullishly throughout most of the week with the catalyst being the Fed's interest rates decision on Wednesday, expected to either be held steady or face a slight cut. The FOMC Press Conference is to follow shortly afterwards and the Non Farm Payroll report will come out on Friday the 2nd of February 2024. This may have USD-trades a little bullishly volatile to thinly push the DXY up to 106.61 USD, effectively closing the 106.51 ~ 106.61 USD market gap before tumbling down as the market loses interest on the mighty Dollar.
It must be well noted that there is another gap that exists lower on the index between 102.67 and 102.74 USD that has to eventually be closed. This is forecasted to be the magnet that pulls the US Dollar down after Wednesday's decision and bullish volatility, setting the DXY enroute towards a tumble down towards the March 2022 Daily TF tweezer-bottom lows and gap resting between 97.36 and 97.70 USD.
Sentiments: "Temporarily" Bullish on the USD for the week, with strong bearishness stepping in once the gap between 106.51 and 106.61 is closed with a bearish rejection. Bullishness will be maintained if the DXY firmly breaks and holds well above 107.12 USD as a move to 110.40 USD will be on the table.
Looking at recent price action, Friday's close was above the 50 Day EMA and we can expect the USD to move bullishly throughout most of the week with the catalyst being the Fed's interest rates decision on Wednesday, expected to either be held steady or face a slight cut. The FOMC Press Conference is to follow shortly afterwards and the Non Farm Payroll report will come out on Friday the 2nd of February 2024. This may have USD-trades a little bullishly volatile to thinly push the DXY up to 106.61 USD, effectively closing the 106.51 ~ 106.61 USD market gap before tumbling down as the market loses interest on the mighty Dollar.
It must be well noted that there is another gap that exists lower on the index between 102.67 and 102.74 USD that has to eventually be closed. This is forecasted to be the magnet that pulls the US Dollar down after Wednesday's decision and bullish volatility, setting the DXY enroute towards a tumble down towards the March 2022 Daily TF tweezer-bottom lows and gap resting between 97.36 and 97.70 USD.
Sentiments: "Temporarily" Bullish on the USD for the week, with strong bearishness stepping in once the gap between 106.51 and 106.61 is closed with a bearish rejection. Bullishness will be maintained if the DXY firmly breaks and holds well above 107.12 USD as a move to 110.40 USD will be on the table.