Morning Insights 27th January

Simon Alagbe

Analyst


Instrument: EURUSD

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1.21397 with take profit at 1.21214

Bullish Preference: Buy position is envisaged if price trades above 1.21558 with take profit at 1.21774

Fundamentals:

FOMC Statement (USD) 8:00 PM

Federal Funds Rate (USD) 8:00 PM

FOMC Press Conference (USD) 8:30 PM

Comment: The mood in the market has been cautious lately as doubts on the new stimulus package in the United States and delay in vaccine delivery in the Eurozone weigh on sentiment. Some level of optimism is expected later today when the Federal Reserve announces its policy decision. The Federal Fund rate is expected to be kept constant with focus on the statement and Press Conference.



Instrument: US30

Technical Analysis:

Bearish Preference: Sell position is envisage if price trades below 30661 with take profit at 30585

Bullish Preference: Buy position is envisaged if price trades above 30881 with take profit at 30971

Fundamentals:

FOMC Statement (USD) 8:00 PM

Federal Funds Rate (USD) 8:00 PM

FOMC Press Conference (USD) 8:30 PM

Comments: The Dow closed just below the flat line Tuesday as investors paused their bullish bets on stocks amid a swath of quarterly reports and an update on monetary policy due Wednesday as the Federal Reserve kicked off its two-day meeting. The Fed expected to leave its benchmark rate and pace of bond purchases unchanged, though is likely to deliver a somewhat balanced outlook on the economy.



Instrument: GOLD

Technical Analysis:

Bearish Preference: Sell position is envisage if price trades below 1844.76 with take profit at 1841.76

Bullish Preference: Buy position is envisaged if price trades above 1855.44 with take profit at 1859.34

Fundamentals:

FOMC Statement (USD) 8:00 PM

Federal Funds Rate (USD) 8:00 PM

FOMC Press Conference (USD) 8:30 PM

Comments: The greenback held declines against riskier currencies, with pandemic recovery hopes getting a boost as the International Monetary Fund upgraded its forecast for 2021 global growth. The dollar was trapped on the back foot against major peers on Wednesday as markets wait on comments from Federal Reserve Chair Jerome Powell, who is likely to renew a commitment to the ultra-easy policy.

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