With the US FOMC rate decision tomorrow we took a look at the chart technicals of EURUSD, and the following is what we see regardless of any fundamental beliefs or predictions on the outcome of the meeting. First off the trend of price action has been higher on the higher time frame charts, but has recently turned lower. So we have a potential trend change. The trend change has created a fibonacci extension opportunity to the downside. Secondly, price action has broken down through the longer term trend line support and is not back texting that trend line which will now serve as resistance. Thirdly, there appears to be a rising wedge forming, which is bearish. We believe there is potential up to the 1.2010 level, which is where a short position would be ideal. The target on a move lower would be the 1.1825 level.
Trade active:
Ok so our entry has been achieved for this trade at the 1.2010 level. Now looking for some downward price action during this trading session and perhaps the next 1 or 2 sessions as well. We have plenty of resistance above to help our position.
Trade closed: target reached:
Our target level at 1.1825 has been hit. Nice trade here...