Bizdrone

FOMC Press Conference – DXY – Triple Three

FOMC

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

Many pips ahead!