How the Markets react to Fed interest Rate Decision

The Federal Open Market Committee (FOMC) financing cost choice on Wednesday at 2 p.m. ET, trailed by a question and answer session at 2:30 p.m. ET with Federal Reserve Chairman, Janet Yellen.

It is broadly expected, the Fed won’t raise rates, particularly since the European Central Bank cut rates the previous week.

Work labor power support rate is currently 0.5 rate focuses over its September low. Accepting this pattern will proceed with, the US economy can support genuinely solid occupation development while unemployment rates float bring down extremely continuous, in accordance with the Fed’s desires. It would likewise give the Fed more breathing room concerning raising rates.

The security business sector is boosting its wagers on a Federal Reserve loan cost increment in June as stocks and oil rally.

After Treasury 10-year notes recorded a third straight week by week decay, bond market dealers now see the chances of a June rate trek at around a coin flip, as per prospects information accumulated by Bloomberg. That is up from a 45 percent chance doled out March 10 and chances underneath 10 percent seen a month prior. Since 1994, the Fed hasn’t raised rates unless the fates market had evaluated in no less than 60 percent of the move the day preceding, Bank of America loan cost strategist Mark Cabana wrote in a March 11 note.

The worries lay on worldwide monetary and money related advancements and their impact on US work business sector and expansion take an example china problems.

A higher than expected rate is positive/bullish for the USD, while a lower than expected rate is negative/bearish for the USD.

Now let’s get to charts to test some major instruments that are connected to the trend.

Audusd

Strong resistance at 0.760-0.7720.

Support level 0.7360-0.7420.

Move Above the strong resistance will confirm the next level at 0.82-0.83 area, while staying below 0.7360 will put the audusd for more downside moves- meaning the bearish trend isn’t over yet.

 

USDCAD

Strong support at 1.2960-1.3060 area.

Support level 1.31.

Move below 1.2960 will confirm the next level at 1.2690-1.2720 area, while staying above 1.31 will put the option for more correction to come to 1.38 area.

Cross up again 1.4030 meaning the bullish trend wasn’t over yet.

GBPUSD

Here we have another story, GBP/USD rebound from 1.3825 but I’m still viewing the current rebound as a correction moves- the bearish trend wasn’t over yet.

Below 1.4130-1.4260 support it will turn back to the downside.

Strong support at 1.4130-1.4260 area.

Support level 1.4360 for continuing the corrections up.

Move above 1.4470-1.4520 will confirm the next level at first 1.4640 area, and then to 1.4830 area staying again below the lowest price will put the option for more downside to comes to 1.35 area and even less.

 

USDJPY

usdjpy play the range, consolidation pattern 110.80-114.60.

Strong resistance at 120.40.

Support level below the lowest price will target level at 106.00 area, as long as the usdjpy stays above 106 meaning the bullish trend wasn’t over yet, but keep staying below 114.60 is not a good sign.

Moving above 114.60 will lead to 116.40 resistance, while crossing this level could give us the 118.20 area.

Crude oil

Crude Oil Inventories posted yesterday, The EIA report released on Wednesday showed that U.S. crude inventories rose more than forecast the previous week.

from the technical side as I mention the last post- the pattern suggest the bullish trend, for the coming trading sessions, pointing that the prices creating a possible bullish pattern that its confirmation wti level situated at 39-40 $.

From the other side, this pattern also suggests some corrections after reaching the target. Breaking down 36.20 followed by 35.10 levels will send the crude oil to cope with 33$.

Gold

We saw the triangle pattern in the charts show off.

Technical analysis now can show us the up movements were chosen.

Gold broke up the triangle and made pull back for testing Triple Border.

Now the gold expected to find support at 1224, and a fall through could take it to the next support level of 1189 and even to 1170. The pair is expected to find its first resistance at 1287-1291, and a rise through could take it to the next resistance level of 1324 Meanwhile, the long-term trend remains bearish unless we see him cross up 1360 area, we could see also that 1172 is very important area for continuing this trend.