Fed's Meeting Is in the Focus of Attention

The news feed in the current trading week will be very eventful. Leading central banks will make decisions regarding further monetary policies. Some important statistics will be published as well. At the moment, the dollar index (#DX) is holding monthly lows. Investors have taken a wait-and-see attitude.

dx-finviz-2019-03-19
Source: finviz.com

The key event will be a two-day Fed's meeting, which will start on March 19. Previously, the regulator reported that it would not rush to raise interest rates in the current year. The US continues to publish weak economic releases. The 10-year US government bonds yield shows a negative trend. The figure has reached 2.59%-2.60%. A slowdown in the global economy, as well as uncertainty in the trade negotiations between Washington and Beijing, put additional pressure on the "greenback".

cmefedwatch-2019-03-19
Source: cmegroup.com

Most experts agree that the Fed will maintain its key interest rate range at the previous level of 2.25%-2.50%. The central bank will continue to adhere to a “patient” approach to tightening monetary policy. We recommend paying attention to the comments by the Central Bank representatives, as well as to updated economic forecasts. We do not exclude a further decline in the US dollar against a basket of world currencies.

Let's consider the current technical pattern on the USD/JPY currency pair.

  • Support levels: 111.000, 110.000, 108.750
  • Resistance levels: 112.000, 113.000, 114.100
  • marketnews-usdjpy-2019-03-19

    There is an ambiguous technical pattern on the USD/JPY currency pair. The trading instrument is consolidating. At the moment, the key support and resistance levels are 111.000 and 112.000, respectively. The demand for the US currency has weakened. The USD/JPY quotes are tending to decline. Indicators do not send accurate signals:

    • - the price has crossed 100 MA;
    • - the MACD histogram is in the positive zone but has begun to decline.

    We recommend opening positions from the key levels.

    If the Fed publishes weak economic forecasts and points to a further "patient" approach to tightening monetary policy, it is necessary to look for market entry points to open short positions. The immediate goal for profit taking is the round level of 110.000.

    Alternatively, the USD/JPY quotes may recover to 112.500-113.500.

    When tracking positions, one should use a trailing stop.

    by JustForex, 2019.03.20

    This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

    Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
How to Interpret Inflation Data?
The Consumer Price Index, better known as CPI, is an important economic indicator regularly published by major economies to provide timely information on current inflation.
Read more
Setting the Clock Right: The Best Time To Trade Forex In India And Other Tips
In the forex market, many components come together for ensuring smooth operations and positive outcomes for a trader. Careful timing of trades is one of such components. In this article, we will explain how market timing is made, what time is best (and relatively worse) for trading, and how to choose the best time for forex trading in India.
Read more
The Matter of Trends: The Most Trending Forex Pairs
The forex market is lucrative for beginners and experienced traders alike because of high liquidity, various trading options, and earning potential that can be successfully realized with a properly chosen forex pair. Then the first question a trader should ask themselves is what pairs to trade and how to predict trends to make a profit off them. In this article, we will explore the trending potential of forex pairs, how to select the best pairs in forex, and uncover short-term and long-term trends.
Read more