FOMC Brought Us Few Great Trading Occasions

Yesterday evening we found out that we should not expect any interest rate rises in 2020, which of course was a rather negative information for the American Dollar.
Tomasz Wiśniewski
FOMC brought us few great trading occasions

For majority of the traders it was not a surprise. First of all, that was the recent trend for Dollar and what is more, the first reaction after the FOMC was not too volatile. Despite the limited response for the FOMC in terms of the pips, we still got few nice, significant trading signals.

We start with the main pair – EUR/USD, where the technical situation finally looks really promising. Yesterday, the pair managed to break two important resistances. The first one was the neckline (blue) of the nice inverse head and shoulders pattern and the second one was the long-term down trendline (red). First step towards a major buy signal was made, now it is time for the buyers to hold above those lines and testing them as valid supports. Once the price will establish a strong position above those two, the buy signal will be created.

Second one is the USD/MXN, which we also mentioned yesterday. We pointed out at a rising bearish pressure and the willingness for a breakout of the lower line of the symmetric triangle pattern. We did not have to wait a long time for that. FOMC driven movement managed to break the crucial support, giving us a major sell signal.

Last one is the NZD/USD, which finally reached the crucial long-term resistance (red), that we mentioned in one of our previous analysis. Back then, we anticipated that the price will get there and Kiwi did not disappoint us in this case. Red line is a great place to start a proper downswing but price action traders do not take that for granted. Price action traders wait for the situation to develop. Price closing a day above the red line will be a major buy signal and the price creating a bearish reversal pattern and closing a day below the Wednesday’s lows will be a signal to go short.

This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.