The price has been consolidating at 20Dsma for eleven straight sessions clsoed below that at yesterday’s session.
As investors cautiously wait for FOMC outcome the commodity currency drifts lower on a second consecutive day.
CME observations indicate that the Fed: US federal funds rate futures show traders expect the Fed to raise interest rates in June a 50% probability, the probability of rate hike in December was 80%.
Atlanta Fed GDPNOW Model: lowered the US economy in the first quarter is expected to increase by 1.9% after increasing 2.2% expected.
Merrill Lynch: Fed’s March meeting could “just tactical delay” only.
It is widely accepted that the Federal Reserve is expected to keep rates steady. But the market participants mainly focus on the future course of Fed action.
The Fed releases its policy statement and interest rate estimates at 2 p.m. EDT Wednesday, and Yellen holds a news conference at 2:30 p.m. Inflation forecast is one of the main things to watch in Yellen’s speech today.
The dollar fell against the Yen on Tuesday after the BOJ holds the interest rates. The price has been forming a triangular pattern on the daily chart and earlier the pair spotted with a double bottom.
In the four hour chart, the price made a double bottom between 112.15 and 112.22 levels.
The flip side, resistance zone seems between 114.55 and 114.90 levels.
Trading support finds at 112.60, 112.00 and 111.00
Resistance seems at 113.50 and 114.50 and 115.00
On the weekly charts, 100moving averages seem between 114.80 and 115.50 levels.
At Asian session, trading support finds at 113.00. Until the price holds the 113.00 level retracement towards 113.40 and 113.60 possible.