Hours before the FOMC decision, the US Dollar came under pressure as a result of the US Senate’s complementary election, which ended with the Democrat candidate’s victory. The USD loses in reaction to the election result. AUD and NZD lead the way up to 0.7570 and 0.6940, respectively. EUR / USD rebounded to 1.1750 and USD / JPY pre-staged to 1113,10, but managed to rebound to 113.40.The stock market draws a mixed picture. Nikkei2225 lost 0.5% today under pressure of USD / JPY correction. But in China, the indexes are growing – Shanghai Composite gains 0.7%, and Hang Seng grows by 1.4%.
On Wednesday 13th of December, the event calendar is busy with important news releases. The event of the day is FOMC interest rate decision and statement, but there are other data waiting for a release: US CPI, US Crude Oil Inventories, UK Claimant Count Change, German Final Consumer Price Index and Industrial Production and Employment Change.
EUR/USD analysis for 13/12/2017:
The FOMC Interest Rate Decision, Monetary Policy Statement and Economic Projections are all scheduled at 07:00 pm GMT. The FOMC Press Conference is scheduled at 07:30 pm GMT. The market participants expect an interest rate hike from 1.25% to 1.50%. However, the market will be more interested in the prospects for monetary policy for the future. Economists expect the Fed will remain optimistic with hopes for inflation acceleration and a favorable impact of fiscal policy, maintaining the forecast of three hikes in 2018. However, this may not be enough to overcome investors’ skepticism and give a strong boost to the USD.
Let’s now take a look at the EUR/USD technical picture at the H4 time frame. The key support zone is still the 61% Fibo support at 1.1706 and technical support at 1.1725. Any violation of this level would lead to a test of the next technical support at the level of 1.1622. On the other hand, the key technical resistance remains at the level of 1.1807. Please notice a growing bearish divergence between the price and the momentum indicator.
Market Snapshot: Gold breaks even lower
The price of Gold has broken below the level of $1,243 and made a new local low just above the technical support at the level of $1,235. The price is clearly diverging from the diminishing momentum and the market conditions are oversold, so the bounce towards the level of $1,251 is expected next.
Market Snapshot: DXY locked in consolidation zone
The price of US Dollar Index (DXY) remains locked in a consolidation zone between the levels of 93.89 – 94.26 as it awaits the Fed interest rate decision. The price is diverging from the momentum indicator, so any breakout to the downside will result in a possible test of the technical support at the level of 93.51 or below.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Sebastian Seliga,
InstaForex Group © 2007-2017
Benefit from analysts’ recommendations right now
Top up trading account
Get a bonus from InstaForex
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
We hope you enjoyed reading the above post. How about helping us share the information to your fans and friends on social media? Meanwhile, you can rely on us daily for the latest and relevant free forex trading signals, free forex trading market news, free forex trading technical levels, weekly Pool draws, latest news from Nigeria and the world, educational articles and quality academic information, insurance news and scientific knowledge.
Do you need a classical ORGANIST or an excellent music teacher? CALL Fabian on 08033983034 or email him at email@example.com
Follow us on twitter @newsbeatportal
Engage #SantexTech today to build & install inverters, training on inverters & other electronic designs, projects/kits. Call 08039574535
Click to join Talk Nigeria Today, a group where hot, controversial, and breathtaking issues are brainstormed upon.