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To provide a favorable trading environment to our clients, VT Markets will modify the commission of US Shares on 08^th, August 2022:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

Friendly reminders:
All specifications of US Shares stay the same except commission.

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US stock little declined on Tuesday, as Federal Reserve officials implied the next move of the central bank will be more hawkish to calm runaway inflation.  Investors are keeping their eyes out for comments from Fed officials about the necessity of a more aggressive interest rate policy. It’s also worth noting that, Pelosi’s trip has created new geopolitical tensions for investors already consuming the prospects of the US recession, global interest rate hikes and Russia’s war in Ukraine.  Fresh economic data also showed that US openings in June fell to a nine-month low, which is a signal to tell investors that demand for the labour market is moderating as higher economic pressure.

The benchmarks, S&P500 and Dow Jones Industrial Average both slid on Tuesday. S&P 500 fell with a 0.67 % losses on a daily basis as Nancy Pelosi’s arrival in Taiwan prompted China to do missile test, undermined the geopolitical tensions, and all eleven sectors stayed in negative territory as Real Estate and Financial sectors performed worst among all groups, falling 1.3% and 1.07% respectively. Moreover, the Dow Jones Industrial Average dropped 1.1% for the day, Nasdaq has little changed with 0.3% losses and the MSCI world index rose 0.1% on Tuesday.

Main Pairs Movement

US dollar surged with a 0.85% gain on Tuesday, the market is surrounded by a risk-aversion mood as tensions caused by the news of US House Speaker Nancy Pelosi’s visit to Taiwan. The DXY index eased at the beginning of Tuesday, but regain bullish momentum after the hawkish comments from Federal Reserve officials, which resumed the consecutive days’ losses and back to the level above 106.1.

The GBP/USD dropped 0.65% for the day, as the market amid a risk-aversion mood and a strong save greenback across the board. The cables slip almost all day on Tuesday, as a huge selling pressure caused by Pelosi’s trip may undermine the relationship between US and China. The GBPUSD touched a daily low level during the US trading session around 1.218. Meanwhile, EURUSD also lost the previous day’s gain and fell back to a level under 1.018 at end of the day. The pairs dropped 0.94% on Tuesday.

The Gold declined by 0.66% daily as the risk aversion market makes a save greenback strong across the board and US yields have rallied recently weighing on the gold price. WTI and Brent oil rose 0.56% and 0.51% on Tuesday.

Technical Analysis

EURUSD (4-Hour Chart)

The EUR/USD pair declined on Tuesday, remaining under bearish pressure and dropped to a daily low below 1.019 level amid the risk-averse environment. The pair is now trading at 1.0203, posting a 0.58% loss daily. EUR/USD stays in the negative territory amid a stronger US dollar across the board, as the risk-off market mood underpinned the safe-haven greenback and acted as a headwind for the EUR/USD pair. Tensions between the US and China have escalated as Nancy Pelosi, the speaker of the US House of Representatives is expected to meet Taiwan’s President on Wednesday. News also reported that several Chinese warplanes fly close to the median line of the Taiwan strait this morning. For the Euro, investors await the PMI and the Retail Sales data that will release on Wednesday.

For the technical aspect, the RSI indicator is 47 figures as of writing, suggesting that the downside is more favoured as the RSI stays below the mid-line. As for the Bollinger Bands, the price preserved its downside traction and dropped below the moving average, therefore the bearish momentum should persist. In conclusion, we think the market will be bearish as the pair tests the 1.0175 support line. The bearish case is clear as the technical indicators head firmly lower crossing their midlines into negative territory.

Resistance: 1.0245, 1.0289, 1.0438

Support: 1.0175, 1.0111, 0.9991

GBPUSD (4-Hour Chart)

The GBP/USD pair slipped on Tuesday, retreating from a multi-week high and dropping below the 1.2200 mark in the early US session amid renewed strength witnessed in the US dollar. At the time of writing, the cable stays in negative territory with a 0.20% loss for the day. The concerns about a global economic downturn and escalating US-China tensions ahead of US House Speaker Pelosi’s arrival in Taiwan both weighed on market sentiment, helping the greenback to find demand. For the British pound, the Bank of England is scheduled to announce its monetary policy decision on Thursday, which could be a main driver for the cable and market participants are also rising their bets for a 50 bps rate hike by the BoE.

For the technical aspect, the RSI indicator is 57 figures as of writing, suggesting that the near-term bullish bias stays intact with the RSI indicator holding above 50. For the Bollinger Bands, the price regained upside strength and rebounded from the moving average, so a continuation of the upside trend can be expected. In conclusion, we think the market will be slightly bullish as long as the 1.2178 support line holds. On the upside, a break above the 1.2277 resistance line could favour the bulls and lead to additional gains for the pair.

Resistance: 1.2277, 1.2317, 1.2381

Support: 1.2178, 1.2115, 1.2039

USDCAD (4-Hour Chart)

As the recession fears and US-China tensions over Taiwan drive safe-haven flows toward the US dollar, the pair USD/CAD witnessed some buying and touched a daily high near 1.2880 level during the US trading session. USD/CAD is trading at 1.2843 at the time of writing, rising 0.03% daily. The latest news showed that the plane of US House speaker Pelosi have landed in Taiwan, which increases tensions between the US and China. On top of that, the surging crude oil prices have provided stronger support to the commodity-linked loonie and capped gains for the USD/CAD pair as WTI rebounded towards the $96 per barrel area. The markets expect a further gradual increase of the production targets from the OPEC+ meeting on Wednesday.

For the technical aspect, the RSI indicator is 50 figures as of writing, suggesting that the upside is losing momentum as the RSI indicator drops toward the mid-line. For the Bollinger Bands, the price failed to preserve the upside strength and retreated toward the moving average, therefore some downside tractions could be expected. In conclusion, we think the market will be slightly bearish as the pair failed to break above the 1.2891 resistance line. The falling RSI also reflects bear signals.

Resistance: 1.2891, 1.2944, 1.2986

Support: 1.2823, 1.2785

Economic Data

US stock stopped a three-day rally on Monday as hawkish comments from Federal Reserve and data showing slower growth undermined market risk sentiment. Stocks had surged in July on speculation that rampaged inflation may have peaked and the central bank was closed to the end of the rate-hiking cycle on signs. While more than half of the S&P 500 firms’ earnings have exceeded analyst estimates so far, the rate of earnings is still under the 62% average pace set in the last five quarters. Moreover, Fed officials’ suggestion to the central bank pointed out that a more aggressive interest hike is necessary, which brings the market back to the dark from the sunlight in July.

The benchmarks, S&P500 and Dow Jones Industrial Average both slid on Monday. S&P500 declined by 0.28% daily after reaching its best month since 2020. Seven of eleven sectors stayed in negative territory as Energy, Financial, and Real Estate performed worst among all groups, falling 2.18%, 0.89%, and 0.89% respectively, while it’s worth noting that outperforming sector CONS Staples rose 1.21%. The Nasdaq 100 was nearly not changed and the MSIC World index advanced with a
1.2% rally for the day.

Main Pairs Movement

The US dollar declined on Monday, as investors weighed the possibility of the Federal Reserve will not raise interest rates as hawkish as a few months ago. Besides, the jobs data will be announced at the end of this week, which may be confirmed that the improvement in the labour market is a slowdown. The DXY index dropped with a 0.43% loss for the day. However, the greenback has been up roughly 10% for the year so far, triggered by Fed’s aggressive rate hike policy.

The GBP/USD advanced by 0.65% for the day, as the cables witnessed new transactions amid the US dollar under selling pressure caused by dialled-down Fed monetary policy. GBP/USD reached a daily high level above 1.229 in the middle of the US trading session. Meanwhile, EURUSD also touched its daily high level above 1.027 at the beginning of the US session. Nevertheless, the unchanged unemployment rate played a key stuck for European Central Bank(ECB) to push the interest rate hike policy.

Gold rose 0.35% daily. Ahead of NFP and job data on Friday, XAUUSD witnessed fresh upside traction and touched a daily high above 1774$ mark. Meanwhile, WTI and BRENT dropped 3.79% and 4.80% respectively on Monday.

Technical Analysis

EURUSD (4-Hour Chart)

The EUR/USD pair advanced on Monday, regaining upside momentum and touched a daily high above near 1.027 level after the release of dismal US ISM Manufacturing PMI data. The pair is now trading at 1.0268, posting a 0.41% gain daily. EUR/USD stays in the positive territory amid a weaker US dollar across the board, as the risk-on market sentiment exerted bearish pressure on the greenback and helped the EUR/USD pair to find demand. The US ISM Manufacturing PMI declines to 52.8 in July, which was the lowest reading since June 2020 and showed slowing signs in business activity. For the Euro, investors continued to fuel their speculations of an impending recession in the Eurozone amid the downbeat German Retail Sales data, which plunged the most since 1994 and dropped 8.8% YoY in June.

For the technical aspect, the RSI indicator is 61 figures as of writing, suggesting that the upside is more favoured as the RSI stays above the mid-line. As for the Bollinger Bands, the price preserved its bullish momentum and continued to climb toward the upper band, therefore the upside traction should persist. In conclusion, we think the market will be slightly bullish as the pair tests the 1.0264 resistance line. A sustained strength above that resistance might open the road for additional gains.

Resistance: 1.0264, 1.0438, 1.0484

Support: 1.0177, 1.0153, 1.0111

GBPUSD (4-Hour Chart)

The GBP/USD pair surged on Monday, jumping back above the 1.220 mark and kept refreshing its daily high during the US trading session amid renewed weakness in the US dollar. At the time of writing, the cable stays in positive territory with a 0.88% gain for the day. Investors continued to scale back their expectations for more aggressive rate hikes by the Federal Reserve amid the fear of recession, which acted as a headwind for the safe-haven greenback. Markets are now pricing in a 30% probability of a 75 bps Fed rate hike in September. For the British pound, despite the data from the UK showing that the S&P Global Manufacturing PMI fell to 52.1 in July, the cable remained underpinned by the rising bets for a 50 bps rate hike by the Bank of England.

For the technical aspect, the RSI indicator is 70 figures as of writing, suggesting that the pair is facing heavy upside pressure as the pair stays in the overbought zone. For the Bollinger Bands, the price moves out of the upper bands so a strong trend continuation can be expected. In conclusion, we think the market will be slightly bearish as long as the 1.2284 resistance line holds. The pair might witness some short-term technical corrections before climbing higher amid the overbought condition.

Resistance: 1.2284, 1.2317, 1.2381

Support: 1.2218, 1.2200, 1.2115

USDCAD (4-Hour Chart)

Despite the diminishing odds for more aggressive Fed rate hikes continuing to weigh on the US dollar, the pair USD/CAD gained positive traction and rebounded from seven-week lows toward 1.2835 during the US session. USD/CAD is trading at 1.2846 at the time of writing, rising 0.23% daily. Last week, the Fed hinted that it could slow the pace of the rate hike campaign at some point, which continued to undermine the safe-haven greenback. On top of that, the retreating crude oil prices have acted as a headwind for the commodity-linked loonie and pushed USD/CAD higher as WTI slides towards the $96 per barrel area. Oil prices remained under pressure amid a cautious mood ahead of this week’s OPEC meeting.

For the technical aspect, the RSI indicator is 50 figures as of writing, suggesting that there is no obvious direction for the pair now. For the Bollinger Bands, the price regained some bullish strength and crossed above the moving average, therefore the upside traction should persist. In conclusion, we think the market will be slightly bullish as the pair is heading to test the 1.2841 resistance. A break above that resistance could open the road for additional gains.

Resistance: 1.2841, 1.2891, 1.2944

Support: 1.2785, 1.2698

Economic Data

Dear Client,

Please note the adjustment on the following products due to the international holiday in August:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

The US market is focusing on Non-Farm employment figures this week. The economy added 372,000 payrolls in June of 2022, which is higher than the market forecast of 268,000. Meanwhile, the July projection is at 255,000 additional jobs.

US unemployment rate remains the same in June 2022 at 3.6%, which is similar to the previous months and remains the lowest since February. Market projections are still at 3.6%.

Investors are also keenly anticipating the interest rate decisions of two major central banks: the Bank of England (BoE) and the Reserve Bank of Australia (RBA).

The Bank of England announced its fifth consecutive interest rate hike in June 2022, with a primary bank rate of 25bps to 1.25%, the largest in 13 years to battle inflation. BoE is committed to decreasing inflation to 2%.

BoE also anticipates an inflation rate of above 9% in the following months and above 11% in October. Meanwhile, the Gross Domestic Product (GDP) growth is expected to go down in the first half of the forecast year, which may lead to a 25bps hike in August.

The Reserve Bank of Australia increased its cash rate by 50 bps to 1.35% in July, following the 50bps hike in June and 25bps hike in May. According to the board, there is no need for massive monetary support given the economy’s strength and price pressures. In addition, they are committed to strengthening the amount and timing guided by incoming data. Market analysts forecast a 50bps hike in August.

Lead by big tech, US stock advanced on Friday and notched the best month since 2020. Amazon.com Inc. and Apple Inc. soared as higher revenues from the pair’s iconic powerhouses relieved fears of profit slowdown on profit growth. Despite some concerning indications from economic indicators, the earnings season as a whole has outperformed expectations, with over 75% of S&P500 corporations reporting results that exceeded analyst expectations. Investors cannot resist but predict that Corporate America will be able to weather the storm of inflation, massive rate hikes, and slowing economic growth.

However, two key US price indexes reported higher than forecast, especially the personal consumption expenditures index, which Federal Reserve highly focused on, climbing at the fastest pace since 2005. Overall, the rebound of stocks this month has not yet convinced investors that a new bull market has begun.

Due to a stronger-than-expected earnings season, the S&P500 and the Dow Jones Industrial Average rose on Friday. The S&P500 increased 1.42% daily, while the Dow Jones Industrial Average rose 1% daily. Energy and Consumers Discretion have the best performance of all sectors, increasing by 4.51% and 4.27%, respectively. Meanwhile, the Nasdaq 100 increased by 1.8% on Friday, while the MSCI World index increased by 1.2%.

Main Pairs Movement

On Friday, the US dollar fell to a three-week low below 105.6 as speculation swirled over a possible recession in the wake of conflicting economic data. The DXY index maintained its bearish trend and dropped to a three-week low during the first half of the trading day, before rebounding to a daily high over 106.6 during the middle of the European trading session. Inflation in the United States remained inexorable in June, according to the US price index, and an increase in interest rates is not inconceivable.

The GBPUSD was steady on Friday, losing 0.07%. The cables witnessed some new transactions and reached a daily high level above 1.224 during the Asia trading session amid a weak US dollar across the board. However, the cables fell to a daily low level below 1.207 following the release of a strong US Personal Consumption Expenditures report ahead of the New York trading session. During the middle of the Asia session, EURUSD reached a daily high above 1.025 before falling to a low below 1.015. The pair increased by 0.23% on the day.

Gold climbed 0.58% daily and is now firmly established at over $1760 as US yields erase prior gains and inflation fears. In the meantime, WTI crude oil gained bullish momentum throughout the late Asian session and surpassed $99 per barrel on Friday.

Technical Analysis

XAUUSD(4-Hour Chart)

Gold gathers bullish move following a dip earlier in the session as the US yields turn south. From the technical perspective, gold continues to build its upside momentum beyond the 1746 support zone and gains positive traction for the third consecutive day on Friday at the time of writing. The four-hour outlook is bullish as gold remains way above the ascending trend line. Despite the RSI indicator having reached beyond the overbought territory, the positive MACD seems to continue to support the bulls. As long as gold sustains its momentum above the trend line, its positive outlook remains unchanged. To the upside, the breakout of the immediate hurdle of 1766 would give gold another rally.

Resistance: 1766, 1786, 1811

Support: 1746, 1721, 1680

USDJPY (4-Hour Chart)

USDJPY plunges badly to near 133.00 as the US dollar confronts selling pressure following the fading aggressive Fed tightening expectations. From the technical perspective, it is now seen as in correction to the four-hour outlook up trend. Since USDJPY has officially broken the bullish channel, the bias becomes a downside. Strong support is expected to see at 132.50 for the rebound. A breakout of the support level of 132.50 would accelerate the downside, heading further south. For now, for the bull to reclaim its position, USDJPY needs to at least rise above 135.94.

Resistance: 134.13, 135.13, 135.94

Support: 132.50

EURUSD (4-Hour Chart)

EURUSD edges higher near 1.0200 as the US dollar loses traction. From the technical aspect, the euro dollar starts a fresh recovery against the dollar after hitting the midline of the Bollinger band and the 20 Simple Moving Average. EURUSD looks to oscillate in the range of 1.0109- 1.0284 on the four-hour chart. The outlook of EURUSD is currently neutral as the RSI indicator hovers around the midline and the MACD remains neutral. On the upside, the resistance of 1.0284 would be the first major hurdle to break to begin the bullish move of the euro dollar. On the contrary, if EURUSD falls below 1.0109, the pair might decline towards the 0.9952 level.

Resistance: 1.0284, 1.0362, 1.0459

Support: 1.0109, 0.9952

Economic Data

US stock rallied on Thursday, preserving its bullish momentum and climbing to a seven-week high as investors pared their bets on Fed’s aggressively rate hikes amid the weak economic data. The US Gross Domestic Product (GDP) in Q2 showed that the economy entered a technical recession after contracting by 0.9%. However, investors remained their speculation that the Federal Reserve could reduce the pace of monetary tightening despite the data showing that the economy is losing momentum.

Fed chairman Jerome Powell also said on Wednesday that rate hikes would slow at one point and he shed quite some light on the future of monetary policy. Inflation measures will likely fall amid the slowing economy, which might bring the end of the tightening cycle nearer. In the Eurozone, Germany’s inflation data flashed mixed signals as the Consumer Price Index (CPI) dropped to 7.5% YoY but the Harmonised Index of Consumer Prices (HICP) climbed to 8.5% yearly.

The benchmarks, S&P 500 and Dow Jones Industrial Average both advanced on Thursday as the dismal economic data eased the expectation for aggressively rate hikes by the Fed. The S&P 500 was up 1.2% on a daily basis and the Dow Jones Industrial Average also advanced with a 1.0% gain for the day. Ten out of eleven sectors stayed in positive territory as the Real Estate and the Utilities sectors are the best performing among all groups, rising 3.70% and 3.53%, respectively. The Nasdaq 100 meanwhile climbed the least with a 0.9% gain on Thursday and the MSCI World index rose 1.3% for the day.

Main Pairs Movement

The US dollar declined on Thursday, remaining under selling pressure and retreated toward the 106.1 level as the safe-haven assets performed better against the greenback yesterday. The DXY witnessed some buying and touched a daily top near the 107 mark during the European session, but then failed to preserve its upside traction meanwhile surrendered most of its daily gains. The market’s expectations of no more aggressive rate hikes from the Fed and the release of weaker US Q2 Gross Domestic Product data both exerted bearish pressure on the US dollar.

GBP/USD edged higher with a 0.18% gain on Thursday amid a weaker US dollar across the board. However, the political jitters in the UK and Brexit woes might limit the upside for the cable. The GBP/USD pair dropped to a daily low below 1.211 level in the late European session, then regained upside traction to recover most of its daily losses. Meanwhile, EUR/USD failed to overcome recent losses and remained under bearish pressure after dropping to a daily low below 1.012 level in the European session. The pair was up almost 0.05% for the day.

Gold surged with a 1.25% gain for the day after refreshing its daily high above the $1756 mark in the late US trading session, as the slowing economy and the renewed weakness in the greenback both lend strong support to the precious metal. Meanwhile, WTI oil failed to preserve its upside traction and retreated to the $97 area on Thursday.

Technical Analysis

XAUUSD(4-Hour Chart)

The metal, XAUUSD, gathers bullish momentum for the second day after the US data showed that the economy contracted in the second quarter, thus boosting XAUUSD. From the technical perspective, XAUUSD builds on the overnight upside rebound above the resistance of 1748. The upward breakout gained some follow-through traction on Thursday. The four-hour outlook turns bullish as XAUUSD lands within the upper bounce of the Bollinger band and the RSI indicator hovers within the positive territory. XAUUSD might consolidate slightly above and below 1748 as the RSI has reached the overbought condition. Stably sustaining above the level would support XAUUSD’s upside.

Resistance: 1769, 1790, 1815

Support: 1748, 1722, 1680

USDJPY (4-Hour Chart)

USDJPY falls sharply following the less hawkish Fed. From the technical perspective, USDJPY surrenders after failing to defend the crucial support level of 136.26 in the early Asian session. The intraday decline has pushed USDJPY towards the 0% Fib. Retracement of 134.34. The outlook of USDJPY becomes bearish as the pair officially trades below the bullish channel. In order to reclaim its upside stance, USDJPY needs to at least climb above 136.26. On the contrary, the breakout of the immediate support of 134.34 would confirm another downside momentum toward 131.00.

Resistance: 134.75, 136.52, 137.06, 137.61

Support: 134.34

USDCAD (4-Hour Chart)

USDCAD makes a meaningful recovery after hitting the support level of 1.2795. The outlook of USDCAD remains bearish as the pair continues to trade below the descending trend line. In the meantime, the RSI stays in the negative territory, suggesting that buyers are on the sideline. Failure to defend the immediate level of 1.2795 would accelerate the downside. On the flip side, USDCAD needs to trade above the immediate hurdle of 1.2896 in order to claim its bullish stance.

Resistance: 1.2896, 1.2959, 1.3009

Support: 1.2795

Economic Data

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

In response to Fed chairman Jerome Powell’s less hawkish remarks after the central bank’s monetary policy decision, US stocks jumped on Wednesday, regaining upside momentum and making a significant return. Wednesday, the US Federal Reserve stated that it had increased the main benchmark rate by 75 basis points to a range of 2.25 to 2.5%, which was in line with market expectations and imposed significant downward pressure on the US currency.

In the news conference, Powell also refuted the notion that the United States is in a recession, stating that the Federal Reserve is moving swiftly to combat inflation. The market’s fears of a recession have been allayed by the comments, which have worked as a tailwind for the equities markets. Fears of an energy crisis have increased in the Eurozone as a result of the German gas regulator’s statement that energy costs could increase considerably owing to the shutdown of the main Russian gas pipeline.

On Wednesday, both the S&P 500 and the Dow Jones Industrial Average climbed, as about 85% of S&P 500 companies rose and the Nasdaq 100 experienced its greatest one-day surge since November 2020. The S&P 500 increased by 2.6% on a daily basis, while the Dow Jones Industrial Average rose by 1.4%. The Communication Services and Information Technology sectors performed the best among all categories, growing 5.11% and 4.29%, respectively. All eleven sectors remained in positive territory. The Nasdaq 100 gained the most on Wednesday with a 4.3% increase, while the MSCI World index advanced 1.9% for the day.

Main Pairs Movement

Following the Federal Reserve’s rate decision, the dollar declined. As anticipated, the central bank upped the benchmark rate. Following the FOMC Press Conference, DXY dropped below 106.4. In addition to the Fed’s monetary policy decision, the market responded to chairman Jerome Powell’s comments in which he stated that he did not foresee a recession and sought to allay congress’ recession fears. Thursday’s announcement of the US’s GDP estimate for the second quarter will also be closely monitored by investors.

Wednesday saw a 1.08% increase in GBP/USD due to a lower US currency. Investors interpreted the Federal Reserve’s consecutive 75 basis point rate hikes and admission that production and spending slowed as “dovish.” After the FOMC meeting, the pound exceeds 1,218. EUR/USD surpassed 1.022 as well. Despite the intensifying oil crisis, cable grew 0.82%.

As a result of the Fed’s restrained comments on Wednesday, gold reached a day high above $1740. WTI recovered positive momentum and surpassed $97.6 per barrel.

Technical Analysis

XAUUSD(4-Hour Chart)

Gold climbs above 1720 with an initial reaction to the US Fed, whose decision to raise the interest rates by 75 basis points as expected. Technically speaking, gold still trades in the tight range above and below 1722. In the meantime, gold remains on the midline of the Bollinger band, showing its directionlessness; however, the RSI indicator at the moment skews to the upside, suggesting that the near-term outlook turns bullish. On the downside, if gold falls below 1722, then its momentum would turn bearish as it would trade within the lower bounce of the Bollinger band.

Resistance: 1722, 1748, 1769

Support: 1680.99

USDJPY (4-Hour Chart)

USDJPY loses traction as the Fed signals that it could slow the pace of rate hikes, causing the greenback to lose interest. From the technical perspective, despite the downward price action, USDJPY remains bullish as it stays within the ascending channel as well as the 20 Simple Moving Average. As long as USDJPY can stay above 136.52 and the bullish channel, then the outlook of the pair remains upside. On the flip side, a breakout of 136.52 would imply that the bearish momentum is in charge, attracting some follow-through sellers. The RSI indicator has skewed to the south, signalling that the breakout is possible.

Resistance: 136.52, 137.06, 137.61

Support: 136.84, 134.75

EURUSD (4-Hour Chart)

EURUSD loses traction in the second half of the day on Wednesday as the greenback recovers ahead of the FOMC meeting. From the technical perspective, EURUSD currently trades slightly above the support of 1.0109. The pair has oscillated in the range of 1.0109- 1.0284 since mid-July. Whether EURUSD can hold above the support level would be a turning point to determine the momentum of the pair. If EURUSD falls below the support, then it will attract some follow-through sellers, causing the pair toward further south. The RSI indicator continues to trade within the negative territory, implying that buyers are still on the sideline.

Resistance: 1.0205, 1.0284, 1.0362

Support: 1.0109, 0.9952

Economic Data