EUR/USD falls below 1.1300 as dollar keeps its strength ahead of Fed

EUR/USD is trading in the negative territory below 1.1300 on Wednesday as markets wait for the FOMC to announce its policy decisions following its two-day meeting. The US Dollar Index holds above 96.00 ahead of the American session, supported by the modest recovery seen in US Treasury bond yields. 

EUR/USD News

Joseph Trevisani
Valeria Bednarik

Fed to offer insights into tightening path

The Fed looks to find the right balance between keeping inflation under control and reassuring markets that they will continue to support the economy in the face of a global slowdown. Our experts will analyze the market reaction to the event from 18:30 GMT. Join us here!

USD/CAD jumps above 1.2600 as BoC leaves policy rate unchanged

USD/CAD climbed above 1.2600 with the initial reaction to the Bank of Canada's (BoC) decision to leave the policy rate unchanged at 0.25%. BoC Governor Ticc Macklem will deliver his remarks on the policy outlook at a press conference at 1600 GMT.

USD/CAD News

Gold retreats below $1,840, markets gear up for Fed policy decisions

Gold spent the first part of the day moving sideways in a tight range below $1,850 but came under renewed bearish pressure during the American trading hours. With the dollar holding its ground ahead of Fed's policy announcements, XAU/USD trades below $1,840.

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XRP presents buying opportunity before breakout to $1

XRP continues to test a new support zone in the $0.60 value area. Bottom likely in for XRP, relief rally, or trend change incoming. The Point and Figure chart shows a bullish entry opportunity.

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Federal Reserve Interest Rate Decision Preview: Inflation, Omicron and equities Premium

Fed expected to reaffirm the March end of bond purchases, rate hike. Balance sheet disposition is of prime interest to markets. Equity declines reflect rising interest rates and economic concerns.

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FXS Signals

Technical Confluences Detector

Dhwani Mehta

Gold price has paused its two-day uptrend, as bulls contemplate the next move, in anticipation of the critical Fed interest rate decision. Fed is seen hinting at a March rate lift-off while traders will closely eye any signals on the timing of the balance sheet reduction. Expectations of a hawkish Fed outcome are limiting the upside in gold price, although bulls draw support from the ongoing Russia-Ukraine geopolitical turmoil. Let’s take a look at gold’s key technical levels in the run-up to the Fed showdown.

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the gold price is consolidating below a bunch of healthy resistance levels stacked up around $1,849.

At that supply zone, the previous week’s high coincides with Fibonacci 38.2% one-day.

The immediate upside meets strong offers around $1,852, the confluence of the pivot point one-week R1, Fibonacci 23.6% one-day and Bollinger Band one-day Upper.

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Shiba Inu (SHIB) has shed around 40% of its value due to concerns in global markets about the FED rate decision this evening against a background of geopolitical turmoil.

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XRP presents buying opportunity before breakout to $1

XRP continues to test a new support zone in the $0.60 value area. Bottom likely in for XRP, relief rally, or trend change incoming. The Point and Figure chart shows a bullish entry opportunity.

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WEEKLY FORECAST

EUR/USD: Federal Reserve between a rock and a hard place Premium

The EUR/USD pair gave up its latest gains and returned to its comfort zone, just a handful of pips above the 1.1300 figure. The pair lost the most on Tuesday when US traders returned to their desks and pushed government bond yields to levels last seen in February 2020.

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GBP/USD: Sterling set rebound with help from the Fed, ignoring Boris' travails Premium

Fear has finally arrived – inflation, aggressive policy from the Fed, China's slowing economy and Russia's potential military action. Everything supported the safe-haven dollar and contributed to a much-needed correction in the pound. The Fed decision is now in the limelight. 

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USD/JPY: The Fed’s next step is balance sheet reduction Premium

The USD/JPY moved further from its four-year high at 116.10 on January 4, dipping below 114.00 on Thursday and trading to a one-month low on Friday. Dollar weakness proliferated in spite of the diverging monetary policies of the Federal Reserve and the Bank of Japan (BOJ).

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AUD/USD: Unreliably optimistic Australian data hides a nearby crisis Premium

The AUD/USD pair is trading below 0.7200 heading into the close, unchanged for the week. The pair peaked at 0.7276 on Thursday, helped by encouraging Australian data that, nevertheless, fell short of overshadowing the greenback’s renewed bout of demand.

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Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

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Gold: XAU/USD could turn south on a hawkish Fed surprise Premium

After a tarnished start to the week, gold made impressive gains, breaking above a key resistance area on Wednesday and reaching its highest level in nearly two months, near $1,850, on Thursday. From there, the yellow metal went into consolidation mode, giving back some of its weekly gains, but ended up closing the second straight week in positive territory.

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