The day before the quarterly FOMC meeting will always be tricky to trade. Best to stay out until tomorrow morning when we will have a better idea of direction and sentiment. The question on everyones lips will be answered. Are they slowing down the bond buying program, “tapering”, or not? In just 20hrs we will know. Then we can settle back and do what we do best, trade sentiment for money.
For today, it is about managing current positions, I don’t think there will be many opportunities even in the shorter timeframes.
DATA HIGHLIGHTS TODAY – UK MPC Votes. US FOMC 04:00 Sydney time then 04:30 press conference.
AUDUSD – A buyer bar but LHLL with RSI divergence and overbought I would prefer to be short Aussie.
EURUSD – Read the same as the Aussie.
GBPUSD – A high test and LHLL, like the two above it is overdone up here and I expect it to retrace from here.
NZDUSD – A fabulous buyer bar and HH/HL, defying all its peers the kiwi is outpacing us all and flying higher, be careful Icarus.
USDCAD – Didn’t give me what I was looking for (a HH/HL), instead it is an engulfing seller bar and best to be on the sidelines for the moment.
USDJPY – Yes a HH/HL but not exactly full of buying intention. Another one for tomorrow.
GOLD – Another day of trying to climb before sellers dominated and closed just above support line. Looking shaky and scary if you are a buyer.
David Long/ Proprietary Trading Manager