USD Flies, Indices Fall on Powell’s Forecast. Forex Trading Long GBPUSD. Gold Breaks Out of its Range.

In today’s GCI Market Outlook let’s take a look at Forex Trading on Gold (XAUUSD), GBPUSD, the S&P500, the FTSE100, the Nikkei, and the NASDAQ.

The US Federal Reserve lowered Interest Rates as predicted, but inflation is still an issue.

Look what happened.

After the cut, Jerome Powell announced that the Fed may slow down rate cuts in 2025 driving US indices much lower.

So, should we buy back in?

This move affected all global stock indices and the good news is that the Nikkei is recovering.

It opened lower this morning but filled the gap quite quickly.

This may signal recoveries in the rest of the world.

The FTSE 100 in London fell as well but this may not be a sensible long trade as price action is in a downtrend and GBP is strong against all currencies except USD.

If we look at the US Indices we have some good candidates for long trades as we see the stochastic oscillator oversold and turning up on the S&P500 and the NASDAQ.

We also saw USD pairs move on a much stronger USD.

The big move in USD also affected Gold as price action broke out of its range.

It rebounded quite quickly and it is back to a key level so we will need to see where it wants to go from here.

As most USD pairs were already moving in favour of the greenback, we only see a reversal possibility on GBPUSD.

On the 4-hour chart, we see the stochastic oscillator looking very oversold after the big fall.

For you Fibonacci fans, we see that price action bounced off a key level and is now at the 61.8% level.

Let’s see if GBP buyers and/or USD sellers can push it higher.

Speaking of GBP, let’s see if today’s Interest Rate decision, where we expect no change, causes volatility.

That’s all for now.

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