Yesterday’s FOMC and ECB failed to rock the markets. Well, yes, we had intraday increased volatility on the EUR/USD but at the end of the day, we finished more or less on the same levels as we started. In terms of the central banks, help came from the RBA, where the Deputy Governor Debelle, lifted the AUD with his hawkish comments about the local economy.
The technical situation on the AUD/USD is also promising. The price broke the upper line of the symmetric triangle formation and the long-term down trendline. That is definitely a very positive sign and an invitation to a long-term buy signal.
USD/CHF went higher again despite a nice bearish setup. Today, the price is testing the last two crucial resistances: the upper line of the flag and the neckline of the triple top formation. Bullish breakout will give us a buy signal. The signal to go short will be triggered when the price will break the lower line of the flag but that seems less likely to happen for now.
EUR/USD now has only two areas that really matter. The first one is the horizontal resistance on the 38.2% Fibonacci. The breakout of that one will give us a buy signal. The second one is the dynamic support created by the lower line of the wedge. EUR/USD going below that line will be an invitation to sell.