(MENAFN- Daily Forex)
During Tuesday's trading session, the s&p 500 experienced a rally that broke above the 50-Day EMA and the 200-Day EMA indicators. With the market breaking above the 4000 level in the futures market, it suggests that the market may attempt to rally toward the FOMC meeting. However, there is plenty of resistance all the way up to the 4100 level on shorter-term charts. Advertisement test out your technical skills now! open a free demo account It is important to keep in mind that moving averages attract a lot of attention, and it makes sense that we would see hesitation. Moreover, the moving averages are flat, indicating that the market is in a neutral stance. This is likely because Jerome Powell will make a statement on Wednesday afternoon that will significantly influence the market's next direction. Many hope for a reprieve in interest rate hikes, while others believe that the Federal Reserve may increase rates by as much as 50 basis points . The current consensus is for a 25 basis point increase, but the statement will be crucial in giving an idea of the federal reserve's future direction. Unfortunately, they have a bad reputation for clarity, so we need to be very cautious about the press conference as well.Avoid TradingThe 3900 level should offer significant support, while the 4100 level above should provide significant resistance. It may be best to avoid trading until after the announcement and reaction, as this could be a potentially significant day. Currently, it appears that the 4000 level is a magnet for prices, but this could change rapidly by Thursday's morning trading. It is crucial to keep position size reasonable to protect trading accounts.In summary, the S&P 500 experienced a rally on Tuesday that broke above the 50-Day EMA and the 200-Day ema indicators. The market broke above the 4000 level in the futures market, indicating a potential rally toward the FOMC meeting. However, there is significant resistance up to the 4100 level on shorter-term charts, and moving averages are flat, indicating a neutral stance. The statement from Jerome Powell on Wednesday afternoon will significantly influence the market's future direction. The 3900 level should provide significant support, while the 4100 level above should offer significant resistance. It is advisable to avoid trading until after the announcement and reaction and to keep position size reasonable to protect trading accounts.Ready to trade the s&p 500 forex ? We've shortlisted the best cfd brokers in the industry for you.
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