FOMC Press Conference – DXY – Triple Three Pattern
FOMC Press Conference is right around the corner and the outcome is being watched by traders all over with much interest.
Dollar Index (DXY) is showing a Triple Three Pattern which would mean that USD could get trashed once more, just as it did on my previously posted “FED December Rate Hike – DXY Technicals – Elliott Wave Analysis” article when I said that the FED would increase the rates but expecting a Bearish trend.
Now the Market is in a similar spot and it looks like the USD is positioning once more.
My 2 cents on the event:
- Rate Hike to occur from 1.50% towards 1.75% benchmark points, making the USD Bullish until the Press Conference
- Jerome Powell not to signal more than 3 Rate Hikes this year, making the USD Bearish and forcing traders to trash the dollar
DXY – 2H Chart (picture):
DXY – 2H Interactive Chart:
The previously posted “BIG RED BEAR knocking on your door! 5 High Probability Trades” article still remains on the table, therefore, one would take a look and reassess according to the screen-shots below.
Technical Outlook and Verdict:
- XAU/USD – Bearish on the Rate Hike but Bullish on the Press Conference
Levels to watch for BUY – 1300.00 / 1295.00 / 1285.00
- XAG/USD – Bearish on the Rate Hike but Bullish on the Press Conference
Levels to watch for BUY – 16.00 / 15.85 / 15.50
- EUR/USD – Bearish on the Rate Hike but Bullish on the Press Conference
Levels to watch for BUY – 1.2170/ 1.2130 / 1.2080
- USD/JPY – Bullish on the Rate Hike but Bearish on the Press Conference
Levels to watch for SELL – 107.00/ 108.00
- USD/CHF– Bullish on the Rate Hike but Bearish on the Press Conference
Levels to watch for SELL – 0.96250 / 0.96800