USDOLLAR Finds Support Ahead of Fed Statement
The left chart below shows FXCM's dollar index (USDOLLAR) on the daily time frame. It is below its black 20-day SMA and the SMA is pointing down. The RSI is also on the bearish side of 50 (blue rectangle). This after the Fed announced unlimited QE on 23rd March. However, we note that the index has found support around the 12,480 level (green rectangle). The right chart show's the hourly time frame. Here the EMAs have crossed bullishly and the hourly RSI has moved above 50 (red rectangles) as the greenback bulls defend the level. We note that at 6:00pm GMT that the Fed will release its statement and that 30 minutes afterwards, Fed Chair Powell will hold his press conference. This will very likely cause a spike in volatility and decide trend direction into the near to mid-term.
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