How to minimize the Risk during U.S. FOMC Meeting Minutes?
The key event for the week will be U.S. FOMC Meeting Minutes schedule at 1800 GMT/2330 IST. It’s a detailed record of the FOMC’s most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates. Generally it is scheduled 8 times per year, 3 weeks after the Federal Funds Rate is announced.
The last U.S. meeting minutes was not much of a market mover but investor are more interested in comments from the Fed officials to see how they are planning to taper the Government bonds and stimulus package. Following the last meeting, Chairman Powell insisted that it was too soon to consider tapering the Fed’s asset purchases. In addition, U.S. NFP Job data also disappointed the markets. Let’s see what today’s FOMC Meeting Minutes is bringing out for the FX Traders.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (GOLD): Today gold remains highly volatile ahead of U.S. FOMC Meeting Minutes and touches $1,890 mark in early U.S. session. The pair made intraday high at $1,890 and low at $1,852 mark. A day chart and H1 chart with triple EMA confirms the uptrend for the time being. A sustained close above $1,889 on H1 chart requires for the upside rally. Alternatively, reversal from here will drag the parity down below $1,850 mark.
Key Resistances: $1,890, $1,897, $1,804, $1,812, $1,820
Key Supports: $1,852, $1,847, $1,840, $1,836, $1,830
Take a look and do trade wisely!