Rate decision due at 3:00 PM ET
The FOMC decision and statement is due at 2:00 PM ET with no change expected.
Half way around the world, the RBNZ will be announcing their decision at 3:00 PM ET. The central bank is expected to remain on hold according to a survey from Bloomberg. Our mate Eamonn has a preview with some thoughts HERE.
What do the technicals look like? What levels are of importance through the decision?
Looking at the daily chart, the price is trading at 0.6512 currently and trades above a support area defined by swing lows and highs going back to August 2015. That area comes in at 0.64259 and 0.6467. Yesterday the low stall at the lower extreme of this area. But earlier this month, the price did move below (CPI inflation was very weak for the 4Q and helped pressure the pair). Moving below - and staying below - will be eyed with the next major target at 0.6235 over time.
On the topside from this chart, the 100 day MA (blue line in the chart above at the 0.65858) is a key technical level. Move above that level - AND STAY ABOVE - and there may be some squeeze with 66.70-77 area and the 200 day MA as topside targets (at 0.6744 for the 200 day MA). It is not expected that the upside gets much traction. So be on the lookout for rallies toward the 100 day MA to find sellers and/or any fails above the MA to be eyed.
Other levels to consider on the downside include:
On the downside:
- 0.6490: 100 hour MA
- 06462: 200 hour MA
- 0.6410-18: Lows from Jan 14, intraday on Jan 18 and low from Jan 21
- 0.6381. Low from Jan 15
- 0.6346: Low for Jan
On the topside
- 0.6551: 38.2% of the move down from Dec 29
- 100 day MA at 0.6585
