FOMC Up Next
The FOMC meeting later todayholds the potential to be a key, near-term catalyst for FX price action. Withtraders expecting the Fed to hike rates by .5%, the focus now will be one theaccompanying guidance issued alongside the rate decision. Should the Fedmaintain its recent hawkishness, focusing on the need to normalise policy so asto battle inflation, USD is likely to remain supported near term. However,should we see any moderation in the tone of the Fed’s assessment, particularlyin light of the Q1 GDP miss, this will likely weigh on USD in coming sessions.
Where to Trade the May FOMCMeeting?
XAUDUSD
The recent move lower in Goldcan be seen as a corrective leg against the longer-term bull trend. Price iscurrently hovering around support at the 1871.04 level, with firmer supportbelow around the bull channel bottom and the 1826.71 level. While this areaholds as support, the focus remains on an eventual continuation higher. Bullscan look for a move through 1919.92 as confirmation, targeting 1958.82initially and 2014.32 there above.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.