Finally it’s after FOMC and we can go back to trading. It seems that the markets were waiting for FED’s decisions because recently there was not much happening on the charts.
Lets go to the charts and search for interesting setups:
The pair broke strong resistance yesterday, and today’s candle is a correction. It is worth noting the behavior of the price on the H4 chart, if it falls into the vicinity of previous resistance (now support). If there is a buy signal from Price Action (Pin Bar, Fakey, Inside Bar), it is worth going long. This position will be consistent with both long-term and short-term trends.
On the Eurodolar you can see the Head & Shoulders formation, which, when completed, is a bearish formation and may bring a correction to the earlier support, which would be a very good opportunity to enter long.
Pound is still strong. The pair with Australian Dollar has strongly rebounded, a 3-day correction has occurred and the price is currently rebounding from support (previous resistance). It is worthwhile to change the time frame to 4 hours and look for longs with target at the nearest resistance.
After lifting the interest rates by Bank of Canada’s there was a sharp appreciation of the Canadian Dollar. It seems that the current correction will be an opportunity to enter new positions betting on further appreciation of the currency. Therefore, sooner or later, there may be an opening signal on this pair. Previous support, which will now be a resistance, is a good level to keep eye on. As the position will be consistent with the trend, you can look for it both on D1 and H4.