by JustForex
The EUR/USD currency pair continues to trade in a narrow flat. Now the price is slowly moving up to the moving average line. So, most likely, there will be no significant volatility before the Fed meeting. Analysts are confident that euro quotes will rise after the meeting, as there are no fundamental reasons for the price to fall.
The sellers’ pressure remains high, while the buyers are very weak. The MACD indicator is inactive. The best strategy for traders is to look for sell trades from resistance levels. But considering the deviation from the middle line, it is also possible to look for buy trades from the support levels. Though, it is better to buy on intraday timeframes.
Alternative scenario: if the price breaks out through the 1.2212 resistance level and fixes above, the general uptrend is likely to resume.
Yesterday, the GBP/USD currency pair unexpectedly fell below the priority change level of 1.4075 but failed to consolidate there. By the end of the trading session, the buyers quickly brought the price back above the level. The trigger for the sell-off was the postponement of the opening of the economy to the next month. The situation on GBP/USD becomes contradictory, as the fundamental picture for the British currency in the medium term is positive.
The GBP/USD currency pair trend remains bullish, as the price is above the priority change level. But traders should pay attention to the sellers’ pressure. At the moment, the price is trading below the moving average. The MACD indicator is signaling a divergence. The price is right at the support level, so under such market conditions, traders are better to look for buy trades. Sell positions can also be considered, but from resistance levels and with short targets.
Alternative scenario: if the price breaks down through the 1.4075 support level and consolidates below, the bullish scenario is likely to be canceled.
The USD/JPY currency pair formed a narrow flat right at the resistance level. As a rule, such behavior of the price occurs before the breakout. But considering that the Japanese currency is highly correlated with the dollar index, the outcome will depend on the Fed meeting.
Technically, the mid-term trend is bullish as the price is above the priority change level of 109.18. Now the price has reached the resistance level, and the MACD indicator is signaling a weak divergence. Considering the strong deviation from the moving average, there is a high probability of a small corrective move down. Traders can look for both buy trades from the nearest support levels after the correction as well as sell trades from resistance levels on intraday timeframes.
Alternative scenario: if the price falls below 109.18, the general downtrend is likely to resume.
The USD/CAD currency pair continues to rise. The quotes of the Canadian dollar are highly correlated with the American dollar index now, so a lot will depend on what Jerome Powell will say today at the FOMC press conference.
Technically, the trend remains bullish. The price is trading above the moving average, but the MACD indicator signals a weak divergence. Under such market conditions, traders can look for buy trades from support levels after a small downward correction is completed.
Alternative scenario: if the price breaks down through the 1.2060 support level and fixes below, the downtrend is likely to be resumed.
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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