USD weaker on Powell’s comments, opportunity? WTI (US Oil) in falling wedge [Video]

Brad Alexander FX Large Limited

Yesterday the US Federal Reserve did not raise Interest Rates as expected but, during the FOMC Press Conference, Jerome Powell hinted that this may be the “Pivot” and that they are finished with rate rises.

This sent the USD lower on all pairs.

We see EURUSD in a ranging market now so watch your technical indicators like the stochastic oscillator for signals of the next reversal.

We see the opposite with USDCAD as price action has just bounced off the lower trend line and the stochastic oscillator may soon turn up from oversold.

But, before opening a position involving CAD, check the price of WTI.

We see crude oil in a falling wedge, which can be a bullish pattern.

We still have bearish confluence from the stochastic oscillator though.

If we look at the daily chart, we see the stochastic oscillator looking oversold.

Also, price action may find support at the 50% Fibonacci level.

The news about Interest Rates had a positive effect on the US Indices with the S&P 500 heading back to the 200-day Moving Average.

However, watch the technical side as we have a clear downtrend from July and the stochastic oscillator rising to overbought.

We still have room to move to the upside and we see that the signal line on MACD may exit the histogram which is a bullish indication.

And, don’t forget, whatever you are trading, we have the US Non-Farm Payrolls tomorrow.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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