Central Bank Meetings Day: Both ECB and BOJ Meet

Fundamentals

The Australian CPI was released Wednesday. It fell 0.5%, making the Aussie sink by 30 pips. On the daily charts, the price has broken through the 9-day MA top down. Today at 9:10 AM GMT, RBA Governor Philip Lowe is speaking, which might also influence the local currency.
The US Crude Inventories report was released yesterday. Crude stocks were -3,641M barrels. Brent futures were rising slowly, but surely.
Today, two major central banks are meeting: the Bank of Japan and the European Central Bank are deciding on the key interest rate. No surprises are expected. The BoJ will most likely stick to its “cheap money” strategy, while the ECB will hardly change its monetary policy, leaving the rate unchanged at 0%.
In any event, the CB decisions will be followed by commentary which might also influence the yen and the euro.
Apart from the central bank meetings, traders will be focusing on the US initial jobless claims number and the change in durable goods orders.

Stocks

Yesterday's earnings reports were mostly encouraging. Boeing's EPS rose to $2.01 against the expected $1.94. Procter & Gamble also topped expectations with an EPS up to $0.96.
Today, investors will be of course digesting earning reports from Amazon.com and Ford Motor Company.
Amazon.com, traded on the NASDAQ, is steadily growing. However, there are dojis on the daily charts, which signal that a reversal is possible, although a reversal is unlikely if the report is strong. We recommend watching the 9-day EMA and the Bollinger Bands, which are going sideways. The lower band is currently at $880 per share.
Ford Motor Company broke through the 9-day MA at $11.40 and moved higher. The resistance is now at $11.70 (a 38.20% Fibo retracement).
Russia’s MICEX Index was attacking the resistance at 2,025 (a 78.60% Fibo). If the bulls manage to keep the price above the resistance, the index may well reach 2,060, where a 100% correction is located. If not, and the bears succeed in counter-attacking, the support might be at 2,000.

Currency Market

The AUD/CHF pair continues to fall. The pair is now trading near the support at 0.7440 (a 78.6% Fibo retracement). If there is a bounce, the Aussie may rise to near 0.7515. However, chances are the bears will take the pair lower, to the 2017 low at 0.7350, where the new support may be located. Technically, the AUD/CHF pair has fallen below the neckline of the head and shoulders pattern at 0.7515, so even if there is a short-term correction upward, the outlook remains negative.
But the AUD/CAD pair is doing just fine. According to Elliott Wave Theory, the pair is trading within the 2nd impulse wave. If this is the case, it may be 38.20% to 61.80% of wave 1. The correction may reach 1.0128 or 1.0066, after which wave 3 may form which might be quite extensive, i.e., the longest one.

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