USD Goes Up and Down, Typical FOMC Reaction

After the hawkish FOMC, USD strengthened… but just for a while. Then, the price reversed pushing the dollar index and USDJPY lower and Gold and EURUSD higher. Thanks to those movements, on few instruments, we got interesting trading setups. Be careful though! In few hours, we will have a similar portion of data from the ECB!

Gold defended the long-term up trendline and broke the upper line of the triangle. The price should continue to go up. At least, till they will reach the resistance on the 1306USD/oz

EURUSD bounced from the horizontal support and also broke the upper line of the triangle. What is more, at the end of the Asian session, traders tested that line as a support, which increases the chances for a further upswing

EURAUD is another pair with the buy signal. Here, we do have a bounce from the horizontal support, breakout of the mid-term down trendline and the inverse head and shoulders formation. Wait, there is more. We also broke the neckline and the horizontal resistance around the 23.6% Fibo. Buy signal seems legitimate.

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