US Fed will meet this after noon 6:00 PM GMT and market should pay close attention to words and details. Based on that, you can know how market will head and trade. The easiest way if to see how US dollar will perform and Index levels.
If U.S Index is declining, it's a signal that rival currencies are taking advantage and surging facing weaker US dollar. June hike will be center stage. Any suggestion or adding odds to already 78% chances will fuel US Dollar Index. A stress by FOMC that they still see three possible hikes will also peek the greenback. In March 2017, US Fed increased 0.25% to initial 0.75%, resulted in 1% as US Central Banks Interest. So market should expect two more hikes, most preferable June and end of 2017. This will also boost US dollar.
A neutral stance indicating that US Fed will watch closely coming economic data for more intake will decrease June hike odds, hence collapsing US dollar and opposing currencies will surge, also gold and silver.
Whether a hawkish, dovish and neutral tone by FOMC meeting result, below are technical levels to consider with high volatility expectations.
Current trend: Bullish / Sideways
Resistance levels: R1 1.1236, R2 1.1295, R3 1.1357
Support levels: S1 1.1162, S2 1.1112, S3 1.1072
Trend reversal point 1.1030
Current trend: Bullish Sideways
Resistance levels: R1 1.3045, R2 1.3124, R3 1.3280
Support levels: S1 1.2900, S2 1.2839, S3 1.2753
Point of trend reversal 1.2882
Current Trend: Bearish / Sideways
Resistance levels: R1 1.1200, R2 1.1279, R3 1.1376
Support levels: S1 1.1150, S2 1.1055, S3 1.0958
Point of trend reversal: 1.1020
Current Trend: Sideways / bullish
Resistance levels: R1 0.7496, R2 0.7550, R3 0.7617
Support levels: S1 0.7442, S2 0.7381, S3 0.7327
Point of trend reversal: 0.7400
Current trend: Bullish / Sideways
Resistance levels: R1 1.3575, R2 1.3640, R3 1.3774
Support levels: S1 1.3456, S2 1.3387, S3 1.3289
Point of trend reversal: 1.3390
Gold / XAUUSD
Current trend: Bullish / Sideways
Resistance levels: R1 1256.24, R3 1264.50, R3 1278, R4 1288.36
Support levels: S1 1246.40, S2 1239.15, S3 1229.83, S4 1222
Point of trend reversal 1245
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