As markets wait for the U.S. interest rate decision, pre-FED anxiety reigns.
Dollar
Midweek trading for the Greenback is at a monthly low (102.82) The US economy is about to experience a major day. Factors driving this disinterest from buyers of the US currency can be attributed mainly to the pre-FED anxiety that is generally seen in markets ahead of today’s Interest Rate decision.
Potential buyers of currency will look for any hawkish undertones by the FED today. They also want to know if the FED is close to a policy shift, despite the general expectation of a more cautious stance. As it stands, the balance of probability would have the FED raise rates by 25 basis points later in today’s FOMC monetary policy meeting.
Technical Analysis (D1)
Current Price action, in terms of market structure has formed a potential reverse pattern in the shape of a downward channel. The pattern is partly validated as an impulsive break has continued to move to the upside, as bulls control the narrative. If buyers are able defend the continuation of the bull flag, price could stay bullish.
