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Hello trading community! We see on the US500 chart that the price faces significant resistance in the area between 4000 and 4100. On the daily chart, the US500 is in a descending channel. A continuation of the dollar's bullishness and no rate cut at its next meeting could wipe out investor bullishness and leave the index looking for new lows and support between the 3300-3500 level. Conversely, the other side of the coin prompts us to believe that a softer Fed policy will drive a sudden uptick in expectations for a positive end to the final quarter of the year. On the other hand, the market is pricing in a 75bps rate hike from the Fed and a 50bps cut in December (bullish outlook). Don't forget we have the Bank of England meeting on Thursday, the same outcome is expected (bullish outlook). The DXY is down 80% from the 111.60 level, but we do not rule out buyers entering the 112.4 technical level in the Fed preview. A level at which index bears can be activated against a bullish panorama of the market.
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