As markets wait for the U.S. interest rate decision, pre-FED anxiety reigns.
Midweek trading is dominated by the Greenback at a monthly low (102.82) A big day is ahead for the US economy. Factors driving this disinterest from buyers of the US currency can be attributed mainly to the pre-FED anxiety that is generally seen in markets ahead of today’s Interest Rate decision.
After a five-day decline in currency prices following the banking crisis, potential buyers will be searching for any hawkish undertones today from the FED, as well any clues as to how close they are to a policy pivot, despite the expectation of a more dovish stance. As it stands, the balance of probability would have the FED raise rates by 25 basis points later in today’s FOMC monetary policy meeting.
Technical Analysis (D1)
Current Price action, which is a market structure indicator, has created a potential reversal channel in terms of market structure. The pattern has partially been validated. An impulsive break in structure continues to move upwards as bulls control the narrative. If buyers are able to defend the bull flag continuation, then price may remain bullish.