As the US session gets underway, the USD is tilting a little to the downside despite stronger ADP jobs report. Of course, the FOMC rate decision and comments from Fed Chair Powell is the highlight for the day. That decision will take place at 2 PM ET with Fed chair’s press s conference beginning at 2:30 PM ET.
Will the Fed chair tilt even more toward the hawkish side or stay the course with the expectations that rate cuts would be delayed until more inflation data can be evaluated? The core PCE data last week was somewhat of a relief. The employment cost index released yesterday was not.
The EURUSD after moving lower is moving to a new session high, and in the process is moving back toward the hourly moving averages including the 200 hour moving average at 1.06896 and 100-hour moving average at 1.07034. Both those moving averages will be key barometers for traders through the FOMC rate decision. As a result, it is not surprising that the market is moving back toward those levels.
The USDJPY remains with a more bullish bias as long as the price remains above its 100-hour moving average 156.89. However looking at the five minute chart, there is a small chink in the bullish armor for this pair in the short term with the price dipping below its 100 and 200 bar MAs on that chart. Find out about it in the video above.
The GBPUSD – like the EURUSD – is stretching back to the upside after finding support buyers near its 200-hour moving average at 1.24613. Its 100-hour moving average is above at 1.25129 and remains a key target through the FOMC rate decision. For the time being, the price currently trades between those two moving averages at 1.2486, and awaits the next shove.
Be aware and prepared for the FOMC rate decision.
This article was written by Greg Michalowski at www.forexlive.com.
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