Top Trade Setups in Forex – Who's Up for Fed's Big Move

The greenback mostly traded sideways despite stronger-than-expected fundamentals from the United States. It seems like traders are eyeing for Fed's interest-rate decision, which is due later in the day. The FOMC commenced its two-day meeting. The central bank will announce its decision, and Chairman Powell will hold a press conference today.

 

XAU/USD - Tweezers Bottom Pattern In-Play

The safe-haven-metal prices dropped ahead of the U.S. Federal Reserve meeting, the improvement in market sentiment, a stronger U.S. dollar, and higher U.S. yields pushed gold further lower.

Traders are presently expecting the U.S. central bank's monetary policy statement, which is scheduled to release later in the day. Analysts and investors widely expect that the Fed will keep the interest rates unchanged.

Whereas, intensifying concerns regarding the possible economic impact of the coronavirus outbreak in China and other countries remained in focus. However, there have been over 5,900 cases confirmed in China so far, while the number of death losses increased to 132.

At the data front, the Data from the U.S. released on Tuesday came in mixed. The FOMC commenced its two-day meeting. The central bank will announce its decision, and Chairman Powell will hold a press conference today. Collectively, all of these fundamentals are keeping the precious metal supported.

 

XAU/USD - Daily Technical Levels

Support	Pivot Point	Resistance
1576.62	1581.48	1587.03
1571.07		1591.89
1560.66		1602.3

 

XAU/USD - Daily Trade Sentiment

Gold has tested the support level of 1,563, which was extended by the 50 periods EMA. On the 4 hour chart, gold has closed tweezers bottom pattern at 1,563, which added an extra layer of support to the precious metal prices.

Since the Stochastics is coming out of the oversold zone, we may find gold prices soaring towards 1,580 for now. So the idea today is to stay bearish below 1,581 and bullish above 1,563.

 

USD/CAD - 50 EMA Supports

The USD/CAD slipped 0.2% to 1.3164, following a surge to its highest level in more than a month at 1.3206 on Wednesday. The USD/CAD pair dropped its traction and concluded the day in the bearish region as the decisive recovery observed in crude oil prices boosted the commodity-sensitive CAD find demand.

The market seems not to move much ahead of the FOMC's monetary policy announcements. It's keeping the pair is consolidation below 1.3196. Besides, the Fed rate decision, the investors also eyes on the EIA crude oil report to determine the further trend in USD/CAD.

The barrel of West Texas Intermediate, which eradicated almost 8% in the last ten days on boosted worries over the negative impact of the coronavirus on oil demand, increased higher than 2% and has been running sidelong around $54 since the inception of the day on Wednesday.

 

USD/CAD- Daily Technical Levels

Support	Pivot Point	Resistance
1.3138	1.3172	1.3189
1.312		1.3223
1.3069		1.3275

 

USD/CAD- Daily Trade Sentiment

The USD/CAD is heading upward, and it's pretty much likely to test the double top resistance level of 1.3196. It looks like the boosted demand for greenback has pushed the USD/CAD pair higher, which may keep the USD/CAD in consolidation under 1.3196.

The USD/CAD pair has formed a neutral candle below 1.3196, which shows that traders are looking for a solid reason to make a move. The USD/CAD may gain support around 1.3150, accompanying with resistance at 1.3270. Consider staying bearish below and bullish above 1.3190 today.

 

AUD/USD – Triangle Pattern Breakout

The AUD/USD currency pair looking flat despite the above-forecast Australian inflation data for the month of December. The pair has gained just seven pips on upbeat data. The AUD/USD is currently trading at 0.6767 and consolidates in the range between the 0.6755 - 0.6777.

The inflation, as described by the consumer price index (CPI), which was projected to remain unchanged at 1.7% year-on-year, increased to 1.8% in December. Meanwhile, the trimmed mean core CPI remained unchanged at 1.6% year-on-year, against the forecasted drop to 1.5%.

On a quarter-on-quarter basis, the trimmed mean held steady at 0.4%, and the headline CPI increased to 0.7% from 0.5%, against the expected print of 0.6%.

With inflation data beating expectations, markets will likely continue to price out the possibilities of an RBA rate cut in February. Before the CPI report, the market was pricing a 30% chance of a rate cut next month. The chances dropped sharply from 60% to 30% after the last week's upbeat inflation data.

So, the AUD/USD currency pair may pick up the bids during the day ahead, if the equities flash green. As we all well aware, the Aussie currency has faced selling pressure during the last few days due to Cornovirus-led risk aversion in the financial markets.

 

AUD/USD - Technical Levels

Support	Pivot Point	Resistance
0.6744	0.6755	0.6772
0.6727		0.6783
0.6699		0.6811

 

AUD/USD - Daily Trade Sentiment

The AUD/USD continues to trade lower, and currently, it's looking to violate the major support area of 0.6745. Although the AUD/USD formed a Doji candle followed by sharp selling candles, the AUD/USD failed to hold above 0.6750 support. On the lower side, the AUD/USD is likely to fall further until 0.6706. The RSI also supports the bearish trend as it's value holds around 20. Consider taking selling trades below 0.6755 until 0.6700. All the best for the New York session

 

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