Tuesday brought us a bearish correction and Wednesday brings us its continuation. Traders have started positioning themselves ahead of today’s Federal Open Markets Committee (FOMC) meeting. The correction is pretty small and largely controlled, so it looks like investors don’t want to abandon stocks ahead of the FED meeting. They’re most likely avoiding missing another bazooka or additional helicopter money from the Federal Reserve. In any case, this evening will be very exciting.
Ahead of this meeting the S&P 500 is finishing a head and shoulder formation. The right shoulder is already formed and in theory, we should see a breakout of the neckline. The problem for sellers is that buyers bounced from the neckline with a very handsome hammer candlestick. For many price action traders, this means a denial of the head and shoulder and an interesting buy signal.
The S&P500’s German peer, the DAX is in a very similar situation but in this case, the neckline was broken. Is this breakout giving us a sell signal? If yes then not a very convincing one as the hammer is also present here. In addition, the price is still above the major up trendline. Actually, sellers did not have enough strength to even test this line as a support. The sentiment ahead of the FED meeting still looks positive.
The last asset is the EUR/USD, which finished a bearish correction yesterday and got another buy signal. For three days, the price was inside of the wedge pattern and yesterday broke its upper line. In addition, the price also bounced from the mid-term up trendline. Hours before the FOMC, the sentiment is positive.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Ahead Of FOMC, Sentiment Is Positive For These 3 Instruments
Published 06/10/2020, 08:40 AM
Updated 01/03/2021, 09:10 AM
Ahead Of FOMC, Sentiment Is Positive For These 3 Instruments
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.