I get the feeling, the market is ready for a move after the FOMC decision. There is a lot of posturing in today’s trade with a move higher in the 1st half and a move lower in the second half. What does the technicals say”
- The midpoint of the days range comes in at 1.22610
- The close from yesterday is at 1.22487.
- A new year low was made at 1.2226. This took out the low from yesterday at 1.2234.
- 1.2268 is the underside of the broken trend line on the 5 minute chart above.
What else do we know?
- Range for day 70 pips –> Low
- Range for week 107 pips–> Low
- Something about this trend line – even though broken twice (on Friday/Monday and yesterday). Today, the line held at the lows.
- Something about trend line on the 5 minute chart at 1.2268 currently (see 5 minute chart above)
I will be eyeing the 1.2268 level on the topside as a proxy for bullish or bearish (see chart below). Move above and stay above (stop below 1.2252) and will look for an extension above the high.
If the price is able to stay below the 1.2268 level through the headlines, then a move below the 1.2226 will be eyed. This will break that trend line that has been sticky over the last few days of trading.
A key target should the price move lower remains the 50% of the longer term move up from the 2000 low to the 2008 high. That level comes in at 1.2131. Keep this target in mind.
