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Dollar licking its wounds, gold gives ground, ahead of the all-important Fed decision

Markets have somewhat calmed – potentially before next storm – after the massive dollar sell-off and gold’s surge earlier in the week as tensions mount ahead of the Federal Reserve’s decision. US coronavirus figures, slow-moving fiscal stimulus negotiations, and vaccine hopes are all in the mix.

Gold is stabilizing around $1,950, midway between the new high of #1,980 and the 2011 peak of around $1,921.50. Bank of American foresees $3,000 within 18 months. JP Morgan is bullish on XAU/USD in the short term, and Goldman Sachs sees the precious metal rising to $2,300. Silver, which has also seen a massive rally as well, is set to hit $30 within a year, according to GS.

The US dollar is licking its wounds after a sell-off early this week and stocks are edging lower as speculation around the Federal Reserve’s decision is rising. The world’s most powerful central bank is set to leave its policy unchanged after its massive monetary stimulus early in the year and as it has already signaled no rate hikes at least until 2022.

Jerome Powell, Chairman of the Federal Reserve, will likely be asked about its recent extension of lending programs, the potential for controlling the yield curve, and how lawmakers can play their part. Concerns about worrying signs related to the US economy could further weigh on the greenback.

EUR/USD is holding up above 1.17 benefiting from the upbeat German IFO Business Climate and the agreement on the EU fund, while concerns about rising COVID-19 cases rise.

GBP/USD is above 1.29 as the UK extends its reopening. Brexit talks are going nowhere fast.

AUD/USD is trading around 0.7150 after downbeat Australian inflation figures. Both the headline and core Consumer Price Index were negative in the second quarter. Australian states have tightened travel restrictions as coronavirus infections remain elevated.

USD/JPY is hovering around the 105 level, above the trough of 104.50, which is the lowest since March. Tokyo’s COVID-19 cases remain elevated.

https://www.fxstreet.com/news/forex-today-dollar-licking-its-wounds-gold-gives-ground-ahead-of-the-all-important-fed-decision-202007290525



According to Trading Central (3rd party RIA) the EURUSD is long positions above 1.1380 with targets at 1.1800 & 1.1950 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10839125

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 1.1950
1€ 3,333.33€ 1,666.67€ 1,874.62
5€ 16,666.67€ 8,333.33€ 9,373.10
10€ 33,333.33€ 16,666.67€ 18,746.20
25€ 83,333.33€ 41,666.67€ 46,865.50
50€ 166,666.67€ 83,333.33€ 93,731.00

According to Trading Central (3rd party RIA) the GOLD is long positions above 1850.00 with targets at 2025 & 2070 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10843009

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 2025
0.5€ 4,160.27€ 2,080.14€ 3,111.68
1€ 8,320.55€ 4,160.27€ 6,223.36
5€ 41,602.73€ 20,801.36€ 31,116.79
10€ 83,205.46€ 41,602.73€ 62,233.59
20€ 166,410.91€ 83,205.46€ 124,467.18

USD/CHF Price Analysis: Bears dominate below 0.9200 inside falling channel

USD/CHF recedes to 0.9171 during the pre-European session on Wednesday. The pair dropped to the lowest since June 2015 on Tuesday, which in turn portrayed a descending trend channel on the hourly chart. Though, bullish MACD and multiple days of downside offer breathing space to the bears ahead of the key Fed meeting.

The same highlights the importance of 0.9215/20 area comprising the said channel’s resistance line and 100-HMA.

Should the Fed surprises markets with the neutral or upbeat economic outlook, versus widely anticipated bearish statements, the quote can aim for July 22 low near 0.9280 ahead of aiming for June month’s low near 0.9375/80.

https://www.fxstreet.com/news/usd-chf-price-analysis-bears-dominate-below-09200-inside-falling-channel-202007290602

According to Trading Central (3rd party RIA) the USDCHF is short positions below 0.9355 with targets at 0.9175 & 0.9040 in extension.

* Past performance is not a guarantee of future performance

https://europefx.tradingcentral.com/Product?PK_ANALYSE=10838953

Number of Lots:Required Margin:Risk Management (50%):Potential Profit/Loss 0.9040
1€ 2,841.72€ 1,420.86€ 1,207.57
5€ 14,208.58€ 7,104.29€ 6,037.85
10€ 28,417.16€ 14,208.58€ 12,075.70
25€ 71,042.91€ 35,521.45€ 30,189.25
50€ 142,085.82€ 71,042.91€ 60,378.50