Starting from the top this morning, the weekly chart shows current movement is lurking within the lower limits of its range between demand at 1.0519-1.0798 and supply drawn from 1.1532-1.1278. Moving down one level to the daily chart, however, price sold off from supply coming in at 1.1072-1.1013 (converges 50.0% Fibonacci level at 1.1011), consequently engulfing three daily candles and setting a bearish tone ahead of the all-important Fed meeting today. Downside targets to keep an eye on fall in at the swap support level drawn from 1.0813, followed by another swap support at 1.0725, and possibly even demand coming in at 1.0519-1.0583.
Turning our attention to the H4 chart, yesterday’s selling which originated from the underside of mid-level resistance at 1.1050 engulfed multiple technical supports before stabilizing four pips above psychological support 1.0900 by the day’s end. It’s widely reported that the Fed will raise interest rates today, which could see this pair depreciate further. However, we trade what we see, not what we think, and right now there appears to be no logical entry into this market, apart from a break above and retest of 1.0936, targeting psychological resistance 1.1000. In spite of this, would you want to buy knowing price has just sold off from daily supply and is NOT YET touching base with the lower limits of the weekly range (see above)? We certainly wouldn’t. Therefore, we’ll remain on the sidelines for now and watch for further developments.
Turning our attention to the H4 chart, yesterday’s selling which originated from the underside of mid-level resistance at 1.1050 engulfed multiple technical supports before stabilizing four pips above psychological support 1.0900 by the day’s end. It’s widely reported that the Fed will raise interest rates today, which could see this pair depreciate further. However, we trade what we see, not what we think, and right now there appears to be no logical entry into this market, apart from a break above and retest of 1.0936, targeting psychological resistance 1.1000. In spite of this, would you want to buy knowing price has just sold off from daily supply and is NOT YET touching base with the lower limits of the weekly range (see above)? We certainly wouldn’t. Therefore, we’ll remain on the sidelines for now and watch for further developments.
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