News Technical Analysis

FOMC meeting day; traders try to avoid the risk

U.S. Dollar Index (USDX)

The U.S. dollar edged lower in early sessions but remained near a 20-year high as the market geared up for another aggressive rate increase by the Federal Reserve. The U.S. Federal Reserve starts its latest two-day policy-setting meeting later today and is set to continue its policy of super-sized interest rate hikes to try and rein in overheated inflation.

The index maintains the momentum towards 109.90 on the hourly chart while the Bollinger bands show resistance at these levels. Meanwhile, the moving averages show support at 109.60 at the cross between the 20 and 55 periods MA.

Pivot Point: 109.50

SUPPORTRESISTANCE
109.25109.90
109.15110.15
109.00110.40

Euro (EURUSD)

The common currency rose 0.1% to 1.0035, strengthening its position above parity after German producer prices rose in August at their strongest rate since records began, climbing 45.8% on the same month last year, with soaring energy prices continuing to act as the main driver.

The European Central Bank raised interest rates by 75 basis points last week as the policymakers attempted to tackle inflation nearing double digits. This news from the Eurozone’s largest economy can only strengthen their resolve.

Pivot Point: 1.0050

SUPPORTRESISTANCE
0.99701.0100
0.99501.0150
0.99001.0170

Spot Gold (XAUUSD)

Gold prices rose slightly on Tuesday but kept to a tight range seen this week as investors held off from making big bets ahead of a U.S. Federal Reserve meeting that is expected to result in an interest rate hike. Spot gold rose 0.2% to $1,679.14 an ounce, while gold futures rose 0.6% to $1,687.85 an ounce.

Pressure on gold eased slightly on Tuesday as the U.S. dollar edged lower. But the greenback stayed pinned near 20-year highs, while U.S. Treasury yields rose, ahead of an interest rate decision by the Fed.

Bullion prices slumped to 28 months lows last week after red-hot U.S. inflation data showed that the Fed was likely to tighten rates by a large margin. Spot gold rose 0.2% to %1,678.51 an ounce, while gold futures rose 0.2% to $1,687.30 an ounce.

Pivot Point: 1,663

SUPPORTRESISTANCE
1,6591,670
1,6541,675
1,6251,678

West Texas Crude (USOUSD)

Oil prices steadied on Tuesday on concerns that further U.S. interest rate hikes this week to tame inflation will curb economic growth and fuel demand in the world’s biggest oil consumer. Meanwhile, Brent futures lost 0.1% to $91.93 per barrel while WTI was at $85.60 a barrel, down 0.2%.

Pivot Point: 85.50

SUPPORTRESISTANCE
82.2085.70
81.0087.25
80.7088.75
Designer

Recent Posts

Market Recap | 21-Nov-2024

https://www.youtube.com/embed/bnsScHyQBbQ Gold (XAU/USD) continues its bullish momentum for the fourth consecutive day, trading near $2,660,…

2 days ago

Notification of Change in the Leverage of US Shares

Dear Valued Clients, Please be advised that the leverage on all US Share CFDs products will…

2 days ago

Money Expo Qatar 2024: STARTRADER Unearths the Riches of the Patch

Overview of the Event The Money Expo Qatar 2024 was held at the Doha Exhibition…

5 days ago

Two-Factor Authentication (2FA): A Minor Shift, a Major Boost for Security.

Dear Valued Clients, STARTRADER always prioritizes the interests of clients. With two-factor authentication (2FA), we…

5 days ago

Rollover Notification in November

Dear Valued Clients, Please be advised that the following CFD instruments will be automatically rolled…

2 weeks ago

Market Closure in November

Dear Valued Clients, Please be advised that the following instruments' trading hours and market session…

3 weeks ago

This website uses cookies.