Bitcoin and Ether rebound as focus shifts to the Fed
Asian stocks and European and American futures drifted upwards as attention turned to the falling bond yields and the upcoming Federal Reserve meeting. Dow Jones, S&P 500, and DAX index futures rose by more than 0.10% while the Nikkei 225 and Hang Seng rose by more than 0.15%. In the United States, the yield on the 10-year and 30-year government bonds declined to 1.56% and 2.23%, respectively. The market is also eying important corporate earnings, with top companies like Microsoft, Alphabet, Visa, Novartis, Apple, and Facebook set to publish their results.
The Fed decision is a key mover. The Federal Open Market Committee (FOMC) will start its monetary policy meeting on Tuesday and publish its results on Wednesday. This will be an important meeting because recent data from the United States like inflation, retail sales, manufacturing, and industrial production have been relatively positive. Therefore, the market will be focusing on whether the Federal Reserve will change its language. Furthermore, several banks such as Norges Bank and the Bank of Canada have already started shifting tone on their policies.
The economic calendar will be muted today, with minimal earnings and macro data. In the United States, the statistics agency will publish the latest durable goods order numbers. In total, the market expects the data to show that durable goods orders rose from -1.2% in February to 2.5% in March. A strong reading will be positive for the US dollar. In Europe, the Ifo Institute will publish the latest sentiment data from Germany. The business climate index, current assessment, and business expectations are expected to rise to 97.8, 94.4, and 101.3, respectively. Traders will also be focusing on the cryptocurrency industry, where the main currencies are bouncing back.
The EUR/USD broke out higher in the Asian session. It rose to a high of 1.2110, which is the highest level since February 26. It also moved above the upper side of the pink descending channel on the hourly chart. The uptrend is being supported by the 25-day moving average and the Ichimoku cloud. The Relative Strength Index (RSI) has also moved above the overbought level while the Average Directional Movement Index (ADX) has risen to 36. Therefore, the pair may keep rising as bulls target the next resistance at 1.2150.
The AUD/USD pair rose to a high of 0.7773, which was substantially higher than last week’s low of 0.7690. On the four-hour chart, the pair has moved above the right shoulder of the head and shoulders pattern. This means that it has invalidated the pattern. It has moved to the 50% Fibonacci retracement level. Also, it has risen above the 25-day and 15-day moving averages while the Relative Strength Index (RSI) has moved close to the overbought level. The pair may keep rising as bulls target the April high at 0.7817.
The ETH/USD pair rose to a high of 2,463 after it resisted moving below 2,055 last week. On the four-hour chart, the pair has moved above the 25-day moving average and is slightly below the all-time high of more than $2,600. The Average True Range (ATR), which is a measure of volatility has rallied to the highest level in days. The DeMarker, on the other hand, has remained between the overbought and oversold levels. Therefore, the pair may keep rising as bulls target the all-time high ahead of the Fed decision.