Going forward, the market is now likely honing in on today’s FOMC statement, where traders/investors will breakdown the words used in the statement for clues about when the Fed may raise interest rates.
Technically, however, our team is looking at the following areas today (lower timeframe confirmation is required at each zone):
• Psychological support 1.1000. Just to be clear here, this number does not, at least in our opinion, boast any higher timeframe supporting structures. The weekly is currently trading mid-range between 1.1532-1.1278/1.0519-1.0798, while daily action recently took out demand drawn from 1.1015-1.1076, potentially clearing the path south for further selling down to demand seen at 1.0846-1.0903 (converging with a nice-looking bull pattern). At this point you’re probably wondering why we’re even selecting 1.1000 as a buy zone today. The reason simply comes from the 4hr picture. The sustained move above supply at 1.1055-1.1026 has likely taken out all offers from this region, which, in turn, could suggest further upside today towards psychological resistance 1.1100, followed closely by supply at 1.1138-1.1108.
• Our second area of interest is a sell zone in the form of supply coming in at 1.1138-1.1108. Should price reach as high as 1.1100 today, we’re expecting to see a fakeout above here to tag in offers sitting within this supply. Reason being is the underside of this 4hr supply area ties in perfectly with a daily swap (resistance) level at 1.1107. To be on the safe side here though traders, we would recommend placing your stops above the ignored Quasimodo level lurking just above supply at 1.1145 to avoid any fakeout!