Vladimir Mihaylov
Independent Analyst
EUR did some artificial volatility yesterday while still expecting today's FED's meeting decision. Whether FED will delay tapering for a month or two, or will continue with the program. This is the big question for today and this will determine the EUR direction. Yesterday EUR moved in a range between 1.3880 and 1.3940. By the time of writing the price is around the support 1.3920 with some signs of downside movement ahead. But i doubt we shall have a significant move outside yesterday's borders before FED's decision is announced. However moves in both directions are possible. If we have tapering delay add to LONGs once above 1.3960 for 1.4020 and above. If FED continues its program it is quite possible after unsuccessful upside attempt the EUR to start a deep correction lower.
GOLD is still trading close to the support 1345-50, for now it still holds any downside. If we have a break through 1345 the price will reach 1326 and will look for support around it. To the upside we need a H4 close above 1365 to restore the upside move.
NZD has reached 0.8640 and the pair is bullish as long as the price is above 0.8560. First support is 0.8586 and next main support is 0.8530. Upside target is last april's top at 0.8675
AUD is trying to reach the daily SMA200 at 0.9050, however ahead of it profit taking stops the upside, but the pair still preserves the upside potential while it is above 0.9100. Below 0.9100 the downside pressure will increase and the support will be around 0.9060, finally 1.9000.
JPY continues sideways movement as the pair is locked within 101 level. There is a strong upside resistance at 102.40 but breaking above will reverse the bearish outlook. Until that the pair is expected to move in a sideways to bearish tone. Daily stohastic indicator shows possible reverse to the upside.
GBP has made a quick test of 1.6550 yesterday, but the price quickly recovered. Today the pair is waiting for the BoE decisions and unemployment data. Good news will probably lead to a new test of 1.6700, while any disappointment will make our way through 1.6550 to 1.6440.
For today:
LONG EUR above 1.3955 SL 1.3935 TP 1.3990-1.4020-1.4040-1.4080
SHORT EUR below 1.3920 SL 1.3940 TP 1.3840-1.3805-1.3750-1.3720
is it quite possible the SL to be hit several times, so be very careful when entering the market.
LONG GOLD above 1354 SL 1350 TP 1364-1386-1392
SHORT GOLD below 1345 SL 1350 TP 1336-1326-1318
Good luck!
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.