Fed's Rate Decision: Policy Rate May Stay Unchanged Despite Falling Inflation

The headline suggests that the Fed may be cautious about cutting interest rates and could keep the current policy rate unchanged. This could slightly weaken market expectations for rate cuts and put short-term pressure on the index. However, technical indicators are giving mixed signals: the RSI is in neutral territory, the MACD is below the signal line but positive, and the price is above the SMA20 and SMA50. Therefore, no clear directional signal is emerging, and the market is expected to consolidate at current levels.

The headline suggests the Fed may not proceed with a rate cut, which could limit risk appetite in the short term. However, NDX technical indicators remain positive: RSI at 61.5 is not in overbought territory, MACD is above the signal line, and the price is above the SMA20 and SMA50. These mixed signals indicate the index may move sideways. The market could stabilize at current levels while awaiting clarity on the interest rate decision. In the short term, I expect consolidation rather than a clear directional move.

GOOGL shares have declined 4% over the past 24 hours, with the RSI at 26.8, indicating oversold territory. The MACD is negative and below the signal line, suggesting weak short-term momentum. The possibility of the Fed holding interest rates steady could pressure growth stocks, increasing the risk of further downside. However, oversold conditions and the price trading below the 20-day moving average also raise the likelihood of a technical rebound. Therefore, while the bias remains bearish, confidence in the direction is maintained at a moderate level.

The news headline may be mildly supportive for the DXY, as it hints that the Fed might not proceed with a rate cut. However, technical indicators are sending mixed signals: the RSI is strong at 60 but not in overbought territory, while the MACD is positive but the signal line has not yet made a clear upward crossover. Price is trading above the SMA20 and SMA50, indicating a short-term uptrend. Still, the impact of the news could be limited, as the market may have already priced in this expectation. Therefore, there is no clear directional signal, and a sideways movement can be expected.