EURUSD Forecast FED Powell and No Man’s Land
Highlights of Powell’s Speech:
The FED interest rate decision and the first meeting of Powell as chairman resulted in a 25 bp increase in current rates and no change in the 2018 dot plot.
Even though there is no definite agreement on the dot plot, for 2019 and 2020, markets get signals of rate hikes above the expectations.
Weekly Chart. Bearish Trend is still valid. – The descending trend line-
1.26500 is the critical resistance. Weekly closing above 1.26500 will take the pair in Bulls Market.
On the Daily Chart;
After breaking the triangle – the target of this formation is 1.30000 – EURUSD made 400 pips bullish move. 1.20900 is the critical support.
The pair squeezed in the rectangle, oscillates between 1.22 and 1.25.FED and Powell could not create the catalyst that would break this rectangle.
Technically, I do not get clear signals to take big positions on the pair. This is the case of ” not to trade is my trade ”
Smaller Chart Timeframes and Intraday Levels:
Price is above EMA 50,100,200 on H4 Chart. The trend is bullish. Pullback levels to add LONG are 1.23300 and 1.23000. However, we have 1.23650 resistance limiting the upward move. Break above 1.23650 will carry the pair 1.24500.
We will focus on 1.23650 – 1.230000 intervals. and take our position according to the direction of the breakout.
We will publish our intraday trade idea for our premium members as soon as we see a clear opportunity on the pair.
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.