DBG Markets: Market Report for Apr 29, 2026

FOMC in Focus: Markets Brace for Powell's Forward Guidance Dollar Pairs & Precious Metal Outlook

Global markets are adopting a highly cautious stance as Wall Street pulled back from its recent record highs, driven by market profit-taking ahead of today's critical FOMC rate decision. All market attention is now squarely focused on the US Federal Reserve. The FOMC concludes its two-day policy meeting today, and Fed Chair Jerome Powells upcoming press conference will be the ultimate catalyst in dictating the next directional move for global asset classes.

FOMC Preview: All Eyes on Powell's Forward Guidance

The Federal Reserve is widely expected to hold its benchmark interest rate steady today. Consequently, the actual rate decision is largely a non-event. The true market-moving volatility will stem entirely from the FOMC statement and Fed Chair Jerome Powell's subsequent press conference.

For now, the focus is solely on the Fed, and the market will likely have clearer trend clues once the press conference concludes.

US Dollar Outlook: Consolidating at Major Resistance Zone

The US Dollar Index continues to trade in a tight, sideways pattern after its recent rebound, perfectly reflecting the broader market's hesitation.

USD Index, H4 Chart

However, for the broader downtrend to extend, the market needs the Fed to deliver a more dovish outlook. Conversely, an ultra-hawkish surprise would send the Dollar higher to retest the 99.00 ceiling once again.

EURUSD & AUDUSD Outlook: Locked in Holding Patterns

Major Dollar counterparts are also locked in strict holding patterns as liquidity dries up ahead of the FOMC announcement.

EURUSD, H2 Chart

Technically, the 1.1700 level is critical to validating the EURUSD uptrend, as the current pullback is viewed as a corrective wave before the next leg up.

AUDUSD, H4 Chart

In the near term, continue to watch the tight range within the 0.7140 to 0.7190 zone. A decisive breakout from this channel will determine the pair's next major move.

Precious Metals Outlook: Bearish Extension？

The precious metals market is facing intense pressure from the Dollar's recent rebound and rising Treasury yields, driven by the looming threat of prolonged high interest rates.

XAUUSD, H4 Chart

Following a breakdown below the $4,700 mark, Gold is expected to maintain its near-term downside risk. However, traders should anticipate elevated volatility until the post-FOMC dust settles.

The $4,500 mark remains a crucial structural support, while the $4,670 to $4,700 resistance zone serves as a key pivot block to confirm the near-term bearish trend.

XAGUSD, H4 Chart

Silver (XAGUSD) is perfectly mirroring Gold's hesitation. The asset recently experienced a breakdown from its established $74.00 to $76.00 boundaries. The imminent FOMC decision will serve as the definitive catalyst to see if this breakdown extends into heavier selling pressure.

Technically, with the breakdown below $74.00, any failure to regain this level—or continued pressure below it—would likely trigger another leg down, setting up a deeper pullback toward the $70.00 mark.

Ultimately, a hawkish Fed will drive Treasury yields and the Dollar higher, heavily pressuring Gold and Silver and risking a severe technical bearish extension. A dovish tone, however, would act as a massive bullish catalyst, potentially sparking a sharp upside relief rally.

Bottom Line & Asset Summary

Global financial markets are operating in a state of extreme caution ahead of today's highly anticipated FOMC interest rate decision. With Wall Street pulling back from record highs, institutional capital is sidelined.

While the Fed is expected to hold rates steady, all eyes are on Chair Jerome Powell's forward guidance. Any signals confirming a “higher for longer” stance and the removal of 2026 rate cuts will trigger massive volatility, driving the Dollar higher while pressuring equities and precious metals.

Asset Outlook Summary:

· US Dollar: Consolidating below the major 98.70 to 99.00 resistance zone. Highly sensitive to today's FOMC rhetoric; a hawkish pivot risks an aggressive upside breakout, while a dovish tone keeps the near-term 98.40 support highly vulnerable.

· EURUSD & AUDUSD: Locked in tight holding patterns. EURUSD relies on the 1.1700 support to keep its uptrend valid, while AUDUSD remains trapped in the 0.7140 to 0.7190 range, awaiting Fed cues for a decisive breakout.

· Gold (XAUUSD): Facing a bearish extension after breaking below $4,700. The asset remains vulnerable to further downside risk toward the $4,500 to $4,600 support zone if the Fed delivers a hawkish shock.

· Silver (XAGUSD): Mirroring Gold's downward trajectory. The breakdown below $74.00 leaves Silver highly vulnerable to a deeper correction toward the $70.00 mark unless bulls can rapidly reclaim previous support.