REMINDER

As the FED prepares to announce its rate cut decision, expect high volatility in the markets. Price action is likely to be erratic, potentially triggering stop-losses in both directions.

Trade with caution—risk only what you can afford to lose, or consider waiting for the decision to be released before taking positions. Sometimes, the best trade is no trade at all until a clearer direction emerges.

Stay alert and manage your risk wisely.

Federal Reserve Rate Cut Decision

The Federal Reserve’s rate cut decision is just a few hours away, with analysts and bankers closely watching how the central bank will respond to Trump’s demands. This decision will play a crucial role in shaping the U.S. economy in the coming days.

If the FED yields to Trump’s pressure, we can expect a decline in the U.S. dollar. However, if they choose to hold rates steady, it will align with market expectations—a pause in cuts while waiting for further policy announcements from Trump. In this case, rate cuts may still be anticipated in the near future.

Until the FOMC makes its decision, market volume is expected to remain low. Global forex patterns suggest that traders may attempt to push prices slightly away from the open to keep them at a flexible midpoint, allowing for swift adjustments once the announcement is made.

GOLD

Gold prices are gaining bullish momentum ahead of the Federal Reserve’s rate cut decision. While prices have followed our expectations of consolidation and upward movement before the announcement, the market remains at a critical juncture where it could break either bullish or bearish. Given this uncertainty, we recommend trading with extreme caution or positioning based on the anticipated direction of the FED’s decision.

The MACD suggests a continuation to the upside, while the RSI is normalizing and showing increasing buying momentum. Candlestick patterns confirm overall price action remains bullish. Entry point strategies should be adjusted accordingly, and auto trade alerts can assist in capitalizing on real-time price movements.

SILVER

Silver remains consolidated with no significant changes. Portfolio allocation strategies should be considered as we continue to wait for further market clues. A breakout in gold to historic highs may serve as a trigger for positioning silver trades. Entry point strategies should account for potential high volatility in the coming days.

DXY (US Dollar Index)

The dollar remains in consolidation ahead of the FED’s rate cut decision, allowing room for any unexpected shifts in price action. Global forex patterns indicate potential fluctuations in response to the FED’s final stance. Auto trade alerts will be key in monitoring rapid changes in dollar strength.

GBPUSD

The Pound is also consolidating. We advise traders to stay on the sidelines unless they are prepared to take a position later. Candlestick patterns suggest possible reversals, and entry point strategies should be implemented with caution.

AUDUSD

The Australian dollar is weakening despite the dollar’s consolidation. This suggests that risk-sensitive assets are being abandoned in favor of safer opportunities like the dollar and gold.

The MACD and RSI both indicate increasing selling volume and momentum. Price has also broken below the EMA200 and the upper boundary of the previous consolidation zone, confirming a shift in momentum. Portfolio allocation should be reviewed, and auto trade alerts can be leveraged to monitor further bearish trends.

NZDUSD

The Kiwi is performing slightly better than the Australian dollar. The MACD is showing signs of recovery, though with low volume, while the RSI fluctuates between extremes, indicating weak momentum.

Although global forex patterns suggest continued buying pressure—given its failure to break below key levels—we maintain a bearish fundamental outlook on this market. Entry point strategies should be used to identify key levels for trade execution.

EURUSD

As expected, the Euro remains in consolidation ahead of the FED rate cut decision. We are still bullish on overall price momentum since prices have not fallen below the previous swing low.

However, the MACD is lacking volume, and the RSI is in overbought territory, signaling a potential shift to bearish price action. While we remain cautiously bullish, traders should be prepared for a sudden reversal. Candlestick patterns should be monitored closely, and auto trade alerts can provide entry signals.

USDJPY

The Yen consolidated throughout yesterday’s session, staying close to the EMA200. While the RSI shows increasing buying momentum, the MACD remains weak in volume and has not yet signaled a bearish cross.

Overall, candlestick patterns indicate bearish price action unless it breaks above 155.704. Entry point strategies should focus on breakout levels.

USDCHF

The Franc is gaining strength after reaching a previous swing high. Current price action suggests a continuation of selling pressure. The MACD shows increased selling volume, while the RSI, though oversold, is beginning to normalize.

All indicators still point to a bearish trend. However, given expectations for a sudden rise in the dollar following the FED decision, we advise caution when trading this market. Portfolio allocation should be managed carefully to mitigate risks.

USDCAD

The CAD continues to trade sideways as anticipated. We expect this consolidation to persist until the FED rate cut announcement later. Global forex patterns suggest that volatility could increase depending on the final decision. Auto trade alerts should be used to track any breakouts.

COT REPORT ANALYSIS

• AUD – WEAK (4/5)
• GBP – WEAK (5/5)
• CAD – WEAK (4/5)
• EUR – WEAK (5/5)
• JPY – WEAK (3/5)
• CHF – WEAK (5/5)
• USD – STRONG (4/5)
• NZD – WEAK (4/5)
• GOLD – STRONG (5/5)
• SILVER – STRONG (5/5)

By leveraging candlestick patterns, entry point strategies, auto trade alerts, portfolio allocation, and global forex patterns, traders can refine their approach to navigating these markets effectively.