Market reacts strongly on FOMC meeting minutes

The USD captured overnight gains upon the FOMC meeting minutes on Thursday. Even though the USD remains in an oversold position, yesterday it performed its strongest buying momentum in months. According to Bloomberg, the FED showed some reluctance to clarify their guidance on the future path of interest rates as was the case back in July’s meeting. Also the FOMC confirmed that uncertainty regarding the economic outlook remained very elevated. After the meeting, the USD continued to move higher across the board. The impact of the movement was seen on all major USD currency pairs. Precious metals and the US major stock markets moved lower upon the meeting displaying a possible change in sentiment as per what the FOMC stated. USD/CHF was among the top movers upon and after the event. Today in the Asian session it moved higher to test our (R1) 0.9160 but was unable to breach it. Yet, if the currency pair is undertaken by a bullish interest then it could move even higher to test the (R2) 0.9180 level or even higher the (R3) 0.9200 hurdle. In the opposite direction a selling momentum could send the currency pair down to the (S1) 0.9120 support level or even lower to the (S2) 0.9105 line. In case of a continuous selling scenario the currency pair could even land lower to test our (S3) 0.9075 support hurdle. Yet, on a long term view, the currency pair remains oversold and is currently trading at levels seen back in 2015.

Apple captures number one spot in market value

Apple became the first publicly listed U.S. company with a $2 trillion stock market value heading the list of the most valuable companies worldwide. Market participants may have expected the happening as Apple’s performance in the past months was solid evidence that the firm is growing. Apple had seen increased revenues on all of its products, from iPhones to iMacs, wearables and services which confirms the company’s user base is growing substantially. On Wednesday, Apple’s shares briefly reached as high as $468.65 which implies the firm’s value reached $2.004 trillion. Eventually, Apple was up +0.13% for the day and closed at $462.83.With the upcoming stock split towards the end of August and some other recent headlines, the massive tech company is always a very enticing idea for investors and traders, as the potential it keeps is impressively rare. US100 moved lower yesterday to retest our now (R1) 11330 resistance level. If the Index is to regain its upward movement it could surpass the (R1) and reach for the (R2) 11450 line that was approached yesterday but not tested. If the bulls continue to drive the market the index could even move higher to capture the (R3) 11555 hurdle. However, if the index is to return lower it could initially test our (S1) 11200 support level. Other levels we have noted for a possible move even lower are the (S2) 11065 level and the (S3) 10975 line that were both last seen on the 12th of August. Despite yesterday’s correction lower the index remains in a buying trend and it would require a move much lower to reverse our current outlook.

Other economic highlights today and early tomorrow

Today during the European session, we get the interest rate decision from Norway for August. During the European mid-day we get the Weekly Repo rate from Turkey while in the US session we get the weekly Initial Jobless Claims figure and the Philly Fed Business Index for August. During tomorrows Asian session we get the Australia Preliminary Manufacturing and Services PMI’s for August and the Japanese Inflation data and Preliminary Manufacturing PMI for August.

USD/CHF 4 Hour Chart

Support: 0.9120 (S1), 0.9105 (S2), 0.9075 (S3)
Resistance: 0.9160 (R1), 0.9180 (R2), 0.9200 (R3)

US100Cash 4 Hour Chart

Support: 11200 (S1), 11065 (S2), 10975 (S3)
Resistance: 11330 (R1), 11450 (R2), 11555 (R3)

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