Today is probably one of the busiest event driven days we have seen in a while with Trade negotiations kicking off, the release of the Crude Oil Inventories and the main event, the FED interest rate decision.
- The U.S. Federal Reserve's Federal Open Market Committee (FOMC) will announce whether the interest rates in the U.S. will increase or remain unchanged on Wednesday at 21:00 SAST. It seems that the FED chair will address reporters after the announcement even though it was not scheduled in the FOMC meeting calendar.
The FOMC is widely expected to keep rates unchanged with FED chair Jerome Powell to emphasize that the FED will exercise patience in 2019.
Let's have a look at the technical charts for the Wall Street 30:
Wall Street 30
- Looking back at our previous Wall Street Wednesday note, on the Daily chart we can see that the 24391-support level held up nicely. The price action from the bounce reached our target price at 24841.
Revisiting the Daily Chart of Wall Street 30 we can see the price consolidating above the 24391-price line and looking to break out of the descending channel. There is a possibility that the price might move higher from 24841 resistance to a target point of 25199 if the market perceives the FED announcement as favourable.
Source – MetaTrader5
Looking closer at the 4Hour Chart we can see the price action well above the 61.8 Fib retracement supported by the 50-day Simple Moving Average (SMA). The price action needs to clear the 24841 level to target the target price of 25199. If tonight’s FOMC meeting is not preserved as favourable, then the price action might move lower to 24391 which coincides with the 61.8 Fib level. If the FIB level does not hold then we might see an even lower target back to the 24089-support level.
Source – MetaTrader5
Image Source: Wolf of Wall Street
Remember that trading puts your capital at risk. Always trade cautiously and never above your means.
Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.