Bulletproof Setups before the FOMC
Wednesday is all about the FOMC and many traders are anticipating some fireworks. Definitely, if you seek volatility, Dollar is a place to go right now but if not and you are very tight towards the risk, then try to avoid the USD at all costs. As always, we got you covered in both cases. In todays analysis, we prepared a pair with the American Dollar and two pairs without. Enjoy!
During crucial macro events, technical analysis does not always work, so you need to have this healthy skepticism towards using technicals before possible crazy movements. If you are still willing to trust the lines and dots, then we have a great setup on the AUDUSD. Todays price managed to break strong horizontal resistance on the 0.717. In theory, that gives a proper buy signal and as long as we are above, the sentiment is positive.
Now something for those who would like to avoid the USD today. EURCHF is creating a large double top formation and precisely speaking, we are in the process of finishing the second top. When we will look a little closer, you will see that the price also created a bearish flag formation and most recently, broke its lower line. From the technical point of view, movement towards the horizontal support and the neckline seems inevitable.
And now GBPNZD, where we have something for long-term position traders. Pair is currently bouncing from the ultra-important long-term up trendline. GBPNZD is doing that with a double bottom formation, which can be spotted on the daily chart and is totally confirmed by the divergence of various oscillators, like MACD and RSI. Future for this instrument looks pretty bright.
This article was originally posted on FX Empire
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