Outlook 08/01: Today, the Federal Reserve’s latest monetary policy announcement, due out at 2:00 p.m. ET, will be the highlight. No changes are expected to the Fed’s current policy, which pegs its benchmark interest rate target range at 1.75%-2%, and Fed Chair Jay Powell will not take questions after the announcement. The Fed is expected to raise rates at its next meeting in September.
/ESU8 Value: YVAH 2822 YPOC 2817 YVAL 2813
/ES Plan: Yesterday market closed balanced. Overnight looks bearish (GBT 2807), moving within Yesterday's value, so we've these options:
A) If market remains above YVAL 2813 with bullish internals, become a buyer above 2813 towards YVAH 2822 ONH 2825.50 and HVE 2828. 'Look below and fail' is a bullish signal.
B) If market starts to move below YVAL 2813 with bearish internals, try to sell leaning on 2813 towards GBT 2807.25 and GAP 2803.25 'Look above and fail' is a bearish signal.
Tips: FOMC days are unique events that call for increased attention and a shift in tactics. It’s best to treat FOMC days as two separate sessions. The time before the announcement, which tends to involve a tightening price range and lower activity, which gives way to a sudden burst of volatility that continues into the close. Trade setups that work well in the morning session may fail completely in the afternoon session, resulting in significant losses.
Today's Economic Calendar
09:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Petroleum Inventories
02:00 PM FOMC Announcement
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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