Free Trade Ideas

Welcome to Fed Day trade! It’s a big day on Wall Street, headlined by the latest interest rate decision from the US Federal Reserve (Fed). At this hour, precious metals are showing strength, while risk assets are relatively flat. The USD will be under the microscope as traders debate the future of Fed policy.
In addition to the FOMC announcements, the Bank of Canada (BoC) is due out with an interest rate decision of its own. The BoC is expected to cut interest rates by 25 bps, mirroring expectations from the Fed. Will the cuts actually come to pass? We’ll have real-time coverage of Jerome Powell’s presser beginning at 2:20 PM EST on FOMC Live! Tune into the Howtotrade.com trading room or at Switch Markets on YouTube for all the action.
During the US premarket hours, the MBA 30-Year Mortgage rate fell to 6.30% from 6.37% week-over-week. The trend in mortgage rates has been down, much like the current bearish momentum in US Treasury yields. This suggests that institutional lenders are banking on a dovish policy cycle from the Fed. In short, be ready for a sluggish Greenback as policymakers slash rates to promote economic growth.
It’s been a big few weeks for the NASDAQ100 (US100). The market has extended all-time highs dramatically since breaking above 25,000. Now, there is a new area of natural resistance in view for the US100:
Big Round Number, 27500
When a market trends to all-time highs, the only possible resistance zones are big round numbers. Known as “natural resistance,” these areas often generate heavy two-way action, which sets the stage for short-term pullbacks. Check out our Key Levels for more information on this Trade Idea.
That’s all for now; we’ll see you later today on FOMC Live!