Like yesterday's article, EURUSD may be potentially setting up in the short term. Yesterday's pattern triggered, but the swing was limited. Today is likely to be heavily influenced by the Fed announcement and Fed Chair Powell's press conference at 6:00 PM GMT and 6:30 PM GMT, respectively. The EURUSD has charted a blue candlestick so far for today (still to complete). However, the candlesticks are in a general area of weakness between the lower blue and red bands. This positioning suggests that the EURUSD strength for today may be suspect. Next, we consider the chart on the right, which is the short-term hourly chart. The R1 pivot is currently acting as resistance, and the stochastic has rolled over and is pointing down (black rectangle). If the EMAs cross bearishly (black ellipse), the R1 level may be a critical reaction level for the EURUSD. In this regard, the stochastic heading towards the 20- levels denotes that a bearish momentum may be present. If the EMAs develop angle and separation to the downside, the short-term traders will align with the longer-term daily zone of weakness. Please exercise caution due to the Fed announcement mentioned above, as volatility will increase on release.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.