Fed Policy Announcement Looms - Dovish Stance May Boost Nasdaq While Hawkish Tone Could Strengthen Dollar

Fed policy announcement on Wednesday is the main event, outlook will impact markets. Dovish stance may lift Nasdaq and weigh on USD. Hawkish stance would have opposite effect.

Watch Powell's views on potential for more rate hikes in 2023. Signaling further hikes could hit Nasdaq and lift USD. More cautious stance may boost Nasdaq and EUR/USD.

EUR/USD facing resistance at 50-day SMA near 1.0695. Support around 1.0535, below that level 1.0500 in focus. Resistance at 1.0670-1.0695 zone.

Nasdaq 100 rebounded from support around 14,150-13,930. Must hold to maintain upside potential. Resistance at 14,600 and 14,860 on further gains.

Traders should closely watch Fed policy guidance, specifically Powell's tone, as key driver of potential market moves on Wednesday.