Investors will be paying attention to the FOMC and ECB meetings this week, as central banks are at the forefront of investor’s minds.
Midway through the week, the Dollar finds support above the key 101.28 As bears break a three-day uptrend, ahead of today’s much-anticipated Fed interest-rate decision, the level is now at 1.2600. Factors driving this loss of momentum from the bulls, can be attributed to the “pre-Fed anxiety” creeping into the market, as well as the downbeat U.S data which weighed heavily on the Dollar on Tuesday. Investors are already pricing in the future. 0.25% Rate hikes and anything beyond that will be considered surprising. However, Fed Chair Jerome Powell is their focus. Powell can provide insights into how the Fed Chair will defend the hawkish narrative amid easing inflation and slower wages or whether a pause to rates is possible and if the narrative of fighting inflation will shift.
Technical Analysis (D1)
Market structure-wise, the price is still supported above the key 101.15 The area in which the previous higher-lower was formed in June 2022. However, it is worth noting that the area is being approached by price in a corrective manner in the shape of a downward channel. This could prove to be a…