Investors Lock Gaze on the Fed Decision

MARKET PARTICIPANTS STEP TO THE SIDELINES AHEAD OF THE FED OUTCOME

The US dollar traded mixed against the other major currencies on Tuesday and during the Asian session Wednesday. It gained versus CHF, JPY and EUR, while it underperformed against AUD, CAD, GBP, and NZD, in that order.

NASDAQ 100 — TECHNICAL OUTLOOK

The Nasdaq 100 cash index traded lower again yesterday, hit support at 13905, but then, it rebounded somewhat. Overall, the index remains well below the lower end of the sideways range that contained most of the price action between October 26th and January 18th, as well as below a downside resistance line taken from the high of January 4th. In our view, this paints a negative short-term picture.

EUR/USD — TECHNICAL OUTLOOK

EUR/USD traded lower yesterday, but hit support near the 1.1263 barrier, and then, it rebounded. Overall, the pair has been printing lower highs and lower lows since January 14th, and although it is back within the prior sideways range, between 1.1234 and 1.1375, we see decent chances for the bears to take charge again soon.

AS FOR THE REST OF TODAY’S EVENTS

As every Wednesday, we get the EIA report on crude oil inventories for last week, and expectations are for a 0.728mn barrels slide, following a 0.515mn barrels increase the week before.

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