Markets Mixed Ahead Of Fed Decision

Equity markets were seen trading flat, a day after rising to fresh highs.

President Trump stated that the US-China trade talks were progressing faster than initially thought. This grew investor appetite for risk.

Economic data on the day saw the Conference Board’s consumer confidence index coming below forecasts. The index fell to 125.9 following a revision for the previous month to 126.3.

Euro Trades Mildly Bullish

The lack of economic data from the eurozone and sparse data from the United States saw the euro lacking direction.

Trading was largely subdued with most of the flows coming out of the US data. A line of big-ticket events today will likely change that.

EURUSD Holds on to Support – Will it Bounce Higher?

The currency pair was seen retesting the support area of 1.1075 – 1.1062. This marks the correction to the downside after price rallied to highs of 1.1177 – 1.1193.

Following this retest of support, we expect the bias to be to the upside. Price action will likely struggle as it approaches the resistance area. All in all, the EURUSD should be confined to the range.

EURUSD

UK Likely to Head for a General Election

The United Kingdom is likely to head for a general election after the opposition Labor party cleared the way. Leading UK indices fell on the news while the sterling did not budge.

The vote, which could take place as early as December, will be pivotal for the country. PM Johnson called for the elections after lawmakers vetoed his Brexit bill to enable the October 31st deadline.

GBPUSD Likely Forming the Upside

The currency pair has been in a holding pattern following the gains. The currency pair rose to highs near 1.2960. The current consolidation shows that there is the potential for a breakout above this level.

This would validate the bullish flag pattern with the GBPUSD likely to break past 1.30 threshold. To the downside, the lower support at 1.2582 will be key.

GBPUSD

Gold Prices Recover After Losses

The precious metal was weaker on Tuesday, but the declines were smaller. This comes a day after gold prices fell sharply boosting risky assets.

The current consolidation is expected as investors wait for today’s Fed meeting. But the bias looks to be to the downside for the moment.

XAUUSD Could Test Support at 1462

The precious metal has been quite erratic in the recent few sessions. This comes after price failed to break past the resistance area of 1511.50. The retest of this level promptly sent gold prices lower. The breakdown of the rising trend line now likely opens the way for declines to 1462.20.

XAUUSD

About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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