Important macroeconomic data will come out in the United States today. The results could change the situation in the forex market. So far, the US dollar index is edging down ahead of the looming US Federal Reserve meeting. The market is awaiting the regulator’s decision. Check out our in-depth review of the market during the Asian trading session. Watch till the end!
On Tuesday, the greenback is fluctuating near multi-week highs. The currency has encountered support from traders fearing unexpected moves from the US Federal Reserve. The two-day meeting of the Federal Open Market Committee starts today. Markets do not expect any changes in the regulator’s stance on monetary policy. However, due to the large volume of positions against the US dollar, investors get cautious about anything that can trigger a rally.
At the moment, the US dollar index is 90.400. It may drop slightly to 90.200 by tomorrow. However, an accurate forecast could be made in our evening review when important data comes out.
The USD/JPY pair is still moving upward to its main target of 110.45. But prior to that, the price should break the resistance level of 110.25. Would the pair be able to do that? During the last week of April, the quote easily broke this indicator line. Moreover, technical indicators on different time frames also confirm the assumption. So, all this shows the possibility of a strong rally in USD/JPY.
Meanwhile, the aussie traded within a relatively narrow range of 16 pips yesterday. So far, the quote has been flat for two days. The price is unlikely to stay at the current level of 0.77075 for long. The pair is believed to go down after macroeconomic data is published. The first target for the aussie is seen at 0.7641. If the price consolidates below this level, the second target will be at 0.7565.
We keep tracking the current state of the market and preparing analytical videos for you every day. This should help you choose a perfect trading strategy and confirm your predictions.
