Hours before the Rate Decision and the Dollar Continues to Weaken!

Daily Forex Fundamentals | Written by Crown Forex | Oct 29 08 14:37 GMT |

Its just hours away before the big rate decision by the Feds where traders are waiting to see who won the betting game on whether the rate cut will be 50 basis points or a more aggressive 75 basis point cut. The dollar is still weakening against majors despite the better than expected durable good orders that have been released; yet markets chose to neglect the data as they feel that something else is worth to wait!! The 15 nation currency continued to surge to trade near the intraday high of 1.2912 at 1.2890s. Germany released its CPI preliminary reading for the month of October showing that inflation has slightly eased yet still that didn't stop the Euro from further extending the gains. The 50 day moving average on the four hour charts at 1.2895 was able to limit gains as the pair slightly spiked over it before reversing back to trade at that level. Technical indicators still support the upside direction as the pair will initially target 1.2920s and then 1.2940s respectively if the mentioned resistance near the 1.29 level is successfully breached. Concerning the Royal Pound, the pair was able to so far build a solid base above the support level at 1.5932 as it failed to breach it to the downside with the ADX indicator still showing the potential for upside movements as the bearish volume has eased on the pair as seen on the MACD indicator. However, looking at the weekly charts, it seems like the third wave of an Elliot Wave has been completed as the pair is now moving to the upside where it will face a resistance level at 1.6330s which is intersected by the 50 day MA on the four hour chart, and if that is successfully breached the pair will head towards 1.6440s before entering an overbought area that could send the pair back to the downside with enough bearish momentum to breach the mentioned support where the next downside target will be at 1.5850 and then 1.5730 respectively. Trading for the Yen has been limited since early morning between the 96.50 support level and the 97.80s resistance which is also the 50 MA on the four hour charts. The Japanese currency is still pressured to the downside and as stock markets rebounded and the risk appetite started returning gradually, majors have been gaining against the Yen in the markets. However, a breach of the resistance level will take the pair to 98.60 whereas a breakout of the support level will return the pair to the 95.70s level. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.