18 September, AtoZForex.com, Vilnius – Following Thursday’s events, Swiss global financial service company UBS has shared Post-FOMC intraday setups for EURUSD, AUDUSD, and USDCAD major currency pairs.
Starting off, the overall response to the FOMC decision has been relatively muted, having in mind that this was one of the biggest events of the year so far, the bank begins. The market can now focus elsewhere, with concerns over China’s slowing economy and a lack of confidence from the Fed, stocks ought to remain under pressure. “The possibility of easing from the ECB in October should cap the upside in EURUSD,” UBS added.
UBS advises to buy dips as long as 0.7140 stands. However, for further guidance watch the response of the US equities. “If yesterday’s late equity selloff was only a blip or if risk remains soft, the next AUDUSD levelon the top side is 0.7400,” the major bank notes.
Finishing off with Loonie, UBS prefers to short any rallies, having the first pivot on the upside of Thursday’s high at 1.3205 – 10 zone. “We expect a test of 1.3000, but will be watching oil, which has been volatile recently,” the major bank finished.
Worth to note that not only did the Fed hold-off interest rate hike, the committee has also deliver a dovish statement with downgraded economic projections. Therefore, a sell-off of the USD against its G10 counterparts could be expected for at least a couple of weeks time.
See also Barclay’s and BofA’s: Post-FOMC summary and guidance
Think we missed something? Let us know in the comments section below.