DAX and USDJPY firm ahead of the FOMC. EURCHF waiting over the cliff

Wednesday is a FED day and all investors are waiting for the rate decision, statement and the economic projections from the FOMC. Ahead of this, at the beginning of the European session, DAX is looking firm. The price bounced nicely from the 13080 support with a bullish candle with a long tail. Currently, we are fighting on the 13180 points but it looks like this resistance will be easily broken and the price will go north.

USDJPY very often shows high correlation with indices. It is not different this time. The price bounced nicely from the 113.1 support creating a candle with a long tail. That is a buy signal and the price should aim higher. Obviously, all that is based on the technical analysis and it all can be easily canceled and declined by the FOMC. Unfortunately, trading USD before the FED is a big lottery.

If so, maybe we can look at the EURCHF. The pair is in the long-term rising wedge, which actually is a bearish pattern. The support line is under the pressure recently and the buyers cannot create a bounce. That creates an occasion for a breakout. Pending order here would not be a bad idea.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis