GOLDWELL：GOLDWELL

The dollar is under pressure in the foreign exchange market following the Fed's dovish tone last night. While some observers may have expected an announcement of a future reduction in asset purchases, the FOMC statement did not mention a reduction in purchases which will continue to be in the range of $120 billion per month.

The Fed should therefore wait for a few more employment reports before it eventually withdraws its support measures.

Market participants are now awaiting the advance release of the U.S. second-quarter GDP. The consensus is for 8.5% annualized growth versus the 6.4% GDPNow indicator developed by the St. Louis Fed.

The first major support to watch will be the former May resistance broken in June at 91.41 points. Note that this support is reinforced by the presence of the 50% Fibonacci retracement threshold around the 91.5 handle

(Chart Source: Tradingview 29.07.2021)

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.

In case of a pullback below this threshold, the bearish outlook would be extended to the symbolic threshold at 90 points.