FOMC rate decision sets the weekly market trend

FOMC decision

The FOMC interest rate decision and policy statement set the trend for financial markets this week, as the Federal Reserve continued to outlay dovish policy messages. The FOMC kept interest rates unchanged, with all policy members agreeing that US rates would like to remain at zero until 2022. The US dollar initially sold-off after the policy address, while gold price advanced. Most economists agreed that the FOMC is likely to continue offering unlimited monetary policy easing for the foreseeable future.

• The USDJPY pair is only bearish while trading below the 108.00 level, key support is found at the 106.50 and 106.00 levels.
• The USDJPY pair is bullish while trading above the 108.00 level, buyers may test towards the 109.00 and 110.00 resistance levels.

Stock Rally

The US stock market continued to post strong gains this week, with the Nasdaq moving to a fresh all-time record high above the 10,000 level. Investors continued to move into tech stocks over hopes that the gradual easing of the global coronavirus lockdown measures would boost consumer spending. Amongst the top leaders inside the Nasdaq such as Amazon, Tesla, Facebook, and Apple all enjoyed strong buying interest in the week. Zoom Video Communication share price also moved closed to a new record high.

• The Nasdaq is only bullish while trading above the 9,800 level, key resistance is found at the 10,100 and 10,300 levels.
• If the Nasdaq trades below the 9,800 level, key support is located at the 9,600 and 9,500 levels.

Bitcoin drop

Bitcoin once again struggled to hold above the $10,000 barrier this week, as recent upside momentum in the pioneer cryptocurrency started to fade. The BTCUSD pair rallied towards the $10,000 level after the FOMC rate decision, however, bears soon took the BTCUSD pair towards the $9,000. Bullish fundamental developments surrounding Bitcoin, such as mainstream adoption and institutional interest have been growing this year. The analyst noted that a breakout above the $10,500 level could propel Bitcoin into a new bullish trend, with the $14,000 level seen as a likely upside target.

• The BTCUSD  pair is only bearish while trading below the $9,100 level, key support is found at the $8,700 and $8,100 levels.
• If the BTCUSD pair trades above the $9,100 level, buyers may test towards the $10,000 and $10,500 resistance level.

Oil recovery

The recent recovery in oil prices continued this week, with both WTI and Brent Crude Oil moving above the $40.00 resistance level. WTI Oil broke through the $40.00 benchmark level after key OPEC members agreed to an oil output cut until July 2020. Traders also turned bullish towards antipodean currencies this week, as both the Australian dollar and the New Zealand dollar enjoyed strong gains against the greenback. The AUDUSD pair advanced above its key 200-day moving average and quickly traded above the 0.7000 level.

• The AUDUSD pair is only bullish while trading above the 0.6850 level, key resistance is found at the 0.7000 and 0.7150 levels.
• The AUDUSD pair is only bearish while trading below the 0.6850 level, key support is located at the 0.6680 and 0.6500 levels.