Look Out for the FOMC's Next Move

It’s about as good as it gets. [Jeff Clark's Market Minute]( Look Out for the FOMC's Next Move By Jeff Clark, editor, Market Minute The dollar is in the spotlight this week. The Federal Open Market Committee (FOMC) meets Tuesday and Wednesday to decide what to do about interest rates, bond purchases, and any other assorted quantitative easing (QE) methods. And – whatever the FOMC decides – the dollar looks set to make a big move one way or the other… Recommended Link [Now Streaming: The American Crypto Summit: The Final Countdown]( [image]( Why the most explosive event in crypto history will happen as soon as December 1st, 2021… [Now Streaming: Click to Watch FREE.]( -- The Fed has been reasonably clear about its intent. In previous statements, the Fed has indicated that it won’t consider raising interest rates until late 2022 or early 2023. But, the Fed is looking to taper the impact of its bond purchasing program as early as this month. Of course, “tapering” is the start of lessening the quantitative easing (QE) policy that’s been in place for 13 years. That’s positive for the dollar… and the dollar has been rallying for the past few months in anticipation of this tapering. From its low in June to its high in early October, the U.S. dollar rallied about 6%. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. That’s a huge move for a currency. And – as I argued [back in September]( – that’s about as good as it gets. The U.S. Dollar Index (USD) is slightly higher today than it was back then. But, it looks to me like it’s sitting on a pivotal level. And, the FOMC statement on Wednesday is likely to provide a catalyst for the dollar’s next big move. Here’s the chart… [chart] [(Click here to expand image)]( Since it bottomed in May, the buck has been in a rising channel pattern (red lines) – with a series of higher highs and higher lows. The dollar index is sitting right on the [support]( line of this pattern. So, it’s set up to either bounce off of support – which would lead to a rally back up to a new high for the year… or breakdown below the support line – which would indicate the start of a new decline phase. My guess is that the buck is ready to break down... Like I said, the Fed has been reasonably clear in its intent to start the “tapering” process. And, the dollar has rallied over the past few months in anticipation of that intent. So, the “odds on” bet would be that the Fed sticks with its intent to taper the bond purchasing program starting this month. [New Law Could Impact 330 Million Americans]( But what if the Fed pauses here? What if the recent weak economic reports cause the Fed to delay the tapering? What if Wednesday’s FOMC announcement on interest rates is more “dovish” (keeping rates low) than “hawkish”? That’s the sort of scenario that could create a breakdown in the dollar index, and lead to a declining dollar over the next few months. I’m more inclined to bet on a breakdown in the buck right here – rather than another rally. But, it could go either way… We’ll likely get our answer by Wednesday afternoon. Best regards and good trading, [signature] Jeff Clark Reader Mailbag In today’s mailbag, Market Minute subscribers write in about Jeff’s recent [essay on orchids and gold]( Dear Jeff, I’ve followed you since your happy days at Stansberry. I still remember you during August 2011 when gold was $1,900 and the whole world, including myself, was sure we were going to the moon. You said, “No, it tops here.” And of course, you were right. Today, two very smart people are screaming “Buy gold stocks!” It’s you and Jesse Felder. I have no doubt that one year from now your call to buy gold stocks will be a call to remember. – Eli I enjoyed your little anecdote about your wife's orchids. We need to consider owning gold or gold stocks as an insurance policy rather than an investment. We hope we never need to cash in on our home or auto insurance policies, but it gives us peace of mind and some protection – just in case. Likewise, buying gold stocks is protection against a market crash – we hope that doesn't happen. And we should be happy if gold languishes since that means our other investments are doing okay. – Robert Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… [Woman gets revenge after 401(k) falls nearly 50%]( Jilted by her broker, a Connecticut woman builds website to expose which stocks could soon be rated a “buy” and triples her savings. [Click here to see the full story.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [The Gold Investor’s Guide]( [image]( [How to Earn Free Bitcoin]( [image]( [The Three Best Gold Coin Deals on the Market Today]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2021 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](