Where will the USD go today?Today is the day! We will find out if the Fed will cut interest rates in US. Most of the economists and experts agree on this but we all know, that we’ve been surprised before we can be surprise again today.
Regardless of the final number, we can expect a higher volatility. For those excited about the big movements on the USD, we have two setups with the American Dollar in them.
First one is the USDCHF, where the price action is suggesting us an upswing. Pair bounced from the horizontal support on the 0.97 and created an inverse head and shoulders pattern. Last week finished with the breakout of the neckline and the mid-term down trendline. This week, started with the correction but it does not change the positive sentiment that was triggered on the last Thursday. As long as we are above the neckline, the buy signal is ON.
Next instrument is Brent Oil, where we are still waiting for a proper trading signal. The price is still locked in the symmetric triangle pattern. The way to trade this is pretty simple. You buy, when the price will break the upper line of the triangle and sell, when the price will break the lower line of this pattern. As for now, traders need to be patient.
Last instrument is an exotic pair – EURPLN. Setup here is quite similar to this one on the USDCHF. We do have an inverse head and shoulders pattern, with the neckline, which was already broken. Today, we do have a small drop but the bullish momentum is still very strong and the price should be aiming higher again in the nearest future.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis