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After Effects Of FOMC

USD/JPY

Dollar Yen broke below the minor ascending trend line and went close to our target area at 99.93. US Dollar is down across the board as the Federal reserve decided to hold the interest rates at 0.50% even though they signaled a rate hike by December. The immediate support is at 100 followed by 99.93 and 98.79, if price breaks all these support levels then USD/JPY will decline towards the lower channel which is at 97 & 96.

EUR/USD

EUR/USD managed to break above the 38.2% fib placed at 1.1197 and is currently 54 pips positive from open. The pair will have a daily close above this 38.2% fib suggesting further gains in the coming days. Even though the price action points towards a bullish move, yet the pair is limited by the upper wedge line that has formed within the ascending channel. Price has to overcome this level to advance further and move towards the 23.6% fib placed at 1.1352 which is about 120 pips from the current level. If EUR/USD fails to break this wedge, then the price will tumble back and range within the wedge.

XAU/USD

After breaching the lower wedge line, Gold found support on the 100 DMA and capitalized on yesterday's Fed's meeting to advance towards 1335,. This level was mentioned in our yesterday's newsletter that a reversal could possibly seen towards 1335. The price is currently trading above the 50 DMA and is aiming at 1350 area, if Gold reaches this level then we will sell the yellow metal in consideration of the range play that has been going around since July 2016. Gold has the possibility to decline towards 1313 and hedge traders may benefit from this range play.

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