Markets Anticipate The Federal Reserve Statement Later Tonight

• 1 Nov 2017

EUR/GBP

The EUR/GBP pair has broken the lower Bollinger band on two consecutive occasions and is approaching the 0.874 price level which represents a previous market bottom. Moving averages and MACD indicate that momentum remains bearish yet RSI is fast approaching the 30 oversold line. There is potential for a bullish reversal in the pair but near-term bias allows for further downside.

EUR/JPY

The EUR/JPY pair has bounced back from the 131.23 price level and is now testing the 20-period EMA. Momentum indicators suggest that sentiment is bullish and a break of moving averages should see the pair heading towards the 134.21 price level. Declining volume does suggest waning interest in the pair and buyers may struggle to push prices higher.

SILVER

Silver prices have bounced back from the 16.62 price level and are testing the 20-period EMA which has been acting as a resistance level for the pair in recent trading sessions. A strong bullish candle indicates significant conviction from buyers and a break of the moving average could send prices to the 17.11 price level.  A sharp upturn on RSI confirms a momentum change.

Impact event: Federal Reserve Statement and Interest Rate Decision at 20:00 GMT+2 and will likely impact commodities.

AUD/CAD

The AUD/CAD pair has hit a strong resistance line at the 0.989 price level. MACD has broken the zero line and RSI has an upward trajectory providing some weight to the uptrend. Volume is also beginning to rise suggesting there may be enough momentum to break the 0.989 price level.

Impact event: Governor Poloz speech at 22:15 GMT+2 will likely impact CAD pairs.