Quote of the day: “A second reason why science cannot replace judgement is the behavior of financial markets.” – Martin Feldstein
EURUSD
Trading strategy: standing aside
The dollar declined across the board as China keeps interest rates on hold. Today’s economic calendar is filled with important events – most important of them being Fed’s Interest Rate Decision and the FOMC statement later today. Until then, other important events will be the German Zew sentiment and US Retail Sales. The euro recovered to as high as 1.3435 against the buck and maintains a bid tone trading above 1.34 at time of writing, hence the notable resistance around 1.3440 being under pressure. Metals are also trading higher today ahead of Fed’s actions and they seem ready to climb higher as policy makers will discuss interest rates and bond purchases. Although technically – short term sentiment remains bearish even if price breaks above 1.3440, carefully building a long position seems a good plan, but only if 1.3440 breaks, as the pair should mirror dollar’s weakness if commodities and better currency performers such as AUD and GBP will rally against the greenback. Current exchange rate is 1.3393 @06:15 GMT
Support: 1.3300, 1.3180/00, 1.3100/25 and 1.2980/00
Resistance: 1.3440, 1.3500 and 1.3600
Market sentiment: long term – mixed, medium term – bullish, short term – bearish, intraday – bullish
- EURUSD 4hrs chart 12-14-2010
- EURUSD 1d chart 12-14-2010
More trading setups
GBPUSD
- GBPUSD 4hrs chart 12-14-2010
AUDUSD
- AUDUSD 4hrs chart 12-14-2010
CHFJPY
- CHFJPY 1d chart 12-14-2010
I’ll probably be back later today and write an update. Have a nice day
Hi Liviu,
what would you expect, if FED will let interest rate unchanged? Bullish, or bearish for $?
Thanks
Hi
They will definitely left rates unchanged. What matters the most and will impact is their tone – whether the Fed will increase debt purchase (beyond the $600 billion already announced) or not. Nobody really expects a miracle such as signaling "no", so the market is likely to remain bearish on dollar. Gold and Silver are reflecting this and they're both up and ready to climb higher. Though keep in mind that the market has a strange way of being surprising…
halo. when trading the feds intrest rate what time frame do you use ?
most of the times I use daily and 4h charts, no specific time frame based on a kind of event such as fed interest rate decision
Many thanks,
I am long on USDJPY as there was head and shoulders pattern. I am currious about, if it will pull back to 82.9
So. happy FED day! :)
Right! happy Fed day! there's champagne & free money and everybody on Wall Street is invited to the party today! :)
USDJPY is currently forming a nice hammer on the daily charts, suggesting more upside. Good luck
More food for thought on the EURGBP: check out the weekly and monthly chart.
If EURCHF is to test 1.28 it will be a double bottom. Will see what SNB will do on Thur morning.
the weekly one is very nice. It may be used by some bucket shops to show their students how easy it is to make money. :-)
clicky clicky
I doubt there's much SNB can do. They already tried and failed so bad.