Jerome H. Powell, the chair of the Federal Reserve, recently made a statement regarding the central bank’s stance on interest rates. He mentioned that the Fed can afford to be patient in deciding when to cut interest rates due to easing inflation and stable economic growth. This is a significant departure from the Fed’s previous stance of raising interest rates to combat rapid inflation, as they may now consider lowering them as price increases subside. Powell also highlighted the Fed’s independence from political influences, particularly as the election season approaches, reaffirming the Fed’s commitment to basing decisions on economic factors rather than political considerations.
Analyzing the stock market predictions provided for various currency pairs, it is evident that there is a bearish sentiment prevailing among analysts. In the case of AUDUSD, the 4-hour timeframe shows a break of structure followed by a run to the previous supply zone. The bearish array of moving averages and equal lows indicate a potential for another liquidity run, supporting the bearish outlook with a target of 0.65210 and an invalidation point at 0.65781. Similarly, for EURUSD, the recent break below the previous low suggests a return to the supply zone that engineered the break, with the confluence of moving averages and Fibonacci retracement levels supporting a bearish sentiment with a target of 1.07797 and an invalidation point at 1.08657. Lastly, GBPUSD is reflecting the price action seen in EURUSD with a slight modification, pointing towards a bearish outcome with various indicators aligning towards a target of 1.25897 and an invalidation point at 1.26766.
In the conclusion, it is emphasized that trading CFDs comes with a certain level of risk. To succeed in trading these opportunities, proper risk management is essential. Avoiding costly mistakes and conducting due diligence are crucial steps in managing risk effectively while navigating the unpredictability of the stock market. By being aware of the potential risks involved in trading and taking necessary precautions, traders can increase their chances of success in the market.