Three Great Setups Ahead of the FOMCToday is definitely a great day for fundamental traders and those looking for higher volatility and increased momentum. Yes, it is FOMC Wednesday!
Today is definitely a great day for fundamental traders and those looking for higher volatility and increased momentum. Yes, it is FOMC Wednesday! Today, apart from the rate decision, we will receive economic projections, statement and a press conference. It’s truly a feast for Forex traders. This event is important for almost all assets, that is why, in our trading sniper video, we will focus today on one index, one commodity and one currency pair.
Let’s start with the index, where our star will be the Nasdaq. At the beginning of September, the price collapsed but currently we are seeing clear signs of a bullish recovery. The price fell towards the 23,6% Fibonacci level, where buyers managed to created the double bottom formation. The pattern is already active as the price broke the neckline of this structure giving us a buy signal. The sentiment is back to positive!
Now Gold, where we also have a buy signal. Optimism comes from the fact, that it broke two crucial dynamic resistances. The first one is the upper line of the symmetric triangle and the second one is the most recent down trendline. As long as the price stays above those two, sentiment is positive.
Finally, we’ll take a look at currencies, and we’ll focus on the USDJPY. Ahead of the FOMC, the USD is moving slightly lower. Here, the price also escaped from the symmetric triangle but in this case, to the downside. Currently, we are on an important mid-term support but it seems that the drop will continue.
For a look at all of today’s economic events, check out our economic calendar.