How to trade the Federal Reserve rate  decision-  

Fed reserve’s interest rate decision is a major event that impacts most assets like gold, EURUSD, and BTC.

Fed funds rate - 6:00 pm GMT and press conference - 6:30 pm GMT

Three Scenarios and Market Reactions

First scenario-

0.50% rate cut

This will positively impact financial assets like gold, EURUSD, and Bitcoin.

Gold-

It will hit a new high as the US treasury yield will likely weaken. Gold and US treasury yield are negatively correlated.

Major levels to watch-

S1- $2560, S2- $2545, S3- $2530

R1- $2605, R2-2630

It is good to buy on dips around $2550-55 with SL around $2530 for a TP of $2630.

EURUSD would break the Aug high of 1.12016 on policy divergence between the US Fed and ECB.

Major levels to watch-

S1- 1.1100, S2- $1.1060, S3- $1.1000

R1- 1.11600,R2- 1.12050, R3- 1.1280

It is good to buy on dips around 1.1120-25 with SL around 1.1060 for  a TP of 1.1200.

BTCUSD (positive ) -

 S1- $57500 , S2- $55000, S3- $52540

R1- $61800,R2- 65000, R3- 67000

Scenario 2 -  0.25% dovish rate cut  (less future cuts)

It would have minor negative impact on gold, EURUSD and BTC.

Gold- It is good to sell on rallies around $2598-600 with SL around $2620 for a TP of $2530.

EURUSD- It is good to sell on rallies around $1.11450 with SL around 1.1180 for a TP of 1.1060.

BTCUSD- Sell around $61000 with SL around $65000 for  TP of $52600.

Scenario 3- No rate cut

All financial asset including gold, EURUSD, and the BTCUSD would bleed drastically.