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The Federal Reserve has left its policies unchanged as expected, acknowledging recent weakness and remaining optimistic about a vaccine-fueled recovery in the second half. Fed Chair Jerome Powell stressed that any talk about withdrawing stimulus is “premature” and committed to supporting the economy. Nevertheless, his dovish words failed to cheer investors.
Facebook and Tesla reported results on Wednesday, falling short of investors’ expectations. These disappointments added to the sour market mood. The safe-haven US dollar is on the rise.
Stimulus: President Joe Biden’s team continues discussing his proposed $1.9 trillion stimulus bill with lawmakers, but is reportedly also ready to go it alone. Treasury Secretary Janet Yellen is involved in deliberations.
The US releases Gross Domestic Product figures for the fourth quarter on Thursday. An annualized increase of 3.9% is projected after sharp changes beforehand. Durable Goods Orders for December mostly missed expectations, somewhat lowering GDP expectations.
US jobless claims are also of interest on Thursday. Applications are set to drop from 900,000 recorded last week, but they remain worrying – especially as the latest figures have shown that the economic misery is spreading beyond pandemic-sensitive sectors.
EUR/USD is on the back foot due to the risk-off mood and also warnings from European Central Bank about the euro’s high exchange rate. Officials also opened the door to further lowering the ECB’s deposit rate, which stands at -0.50%. Germany and Spain release preliminary inflation figures for January.
Gold is on course to close January with a loss, the first such event since 2013.
After reaching 1.2055, EURUSD has returned to 1.2111; right now, it is falling towards 1.2040. Earlier, the asset completed the descending wave at 1.2110, formed a narrow consolidation range, and broke it to the downside. Possibly, today the pair may extend the current correction. Later, the market may complete the correction and start a new growth to break 1.2111. After that, the instrument may continue trading upwards with the target at 1.2200.
After reaching 1.3666, EURUSD has returned to 1.3720; right now, it is falling towards 1.3644. Earlier, the asset completed the correctional wave at 1.3700, formed a consolidation range around this level, and broke it to the downside. Today, the pair may reach 1.3644 and then resume trading within the uptrend with the target at 1.3777.
DAX 30 | UK100 | Technical Analysis Elliott Wave Trading
Overview: Bullish Impulse wave through higher price levels
DAX 30 Elliott Wave: Wave (v) top?
Trading Levels: 13,500 level of support, if this becomes the resistance then expect a move to 13000
DAX30 Trading Strategy: See video
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