USD Longs in Charge into FOMC Minutes

October 12, 2016

In yesterday’s daily market update, we focused on the price of Oil sitting at higher time frame resistance. One bread and butter setup we like to look for here, is if higher time frame resistance holds, then zoom into an intraday chart and short the re-tests.

OIL Hourly:
161012_oil_hourly
Click on chart to see a larger view.

Taking a look at today’s updated hourly chart, you can see that with a touch of the higher time frame trend line on the daily, price bounced and is now re-testing a nice little sell zone.

Let’s see if price can break and give the shorts a bit of early breathing room.

Moving onto the next chart we have been following here, and EUR/USD did get an initial bounce off support, but just ran out of steam as USD strength has taken a grip on forex markets this week as Fed speakers continued to do the rounds spruiking a December hike.

EUR/USD Hourly:
161012_eurusd_daily
Click on chart to see a larger view.

Goodbye trend line support!

Futures markets have priced in about a two thirds chance of a December rate hike, with November coming off down to under a quarter.


These comments from Evans yesterday highlight why markets are pricing in the USD move that they are. With last month’s FOMC meeting minutes to be released tonight, I’m expecting something similar to the above to continue to be drilled into markets.

If this in fact is the case, USD should continue to see buyers:

USD/JPY Daily:
161012_usdjpy_daily
Click on chart to see a larger view.

The USD/JPY chart has consolidated over the last week after a good rally off its bottoms.

USD/JPY Hourly:
161012_usdjpy_hourly
Click on chart to see a larger view.

The gap bounce we spoke about on the @VantageFX Twitter account was nice, and we’ll see if we can get any sort of a further trade out of this one from here.

———

On the Calendar Wednesday:
USD FOMC Meeting Minutes (Thursday morning)

Fund Your Account Today and Win an Apple iPhone 7 or iWatch Series 2!

Open or fund your Vantage FX account today and win an Apple iPhone 7 or iWatch Series 2. Click the banner to get started!

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Social

Free Daily Market Update

Live Spreads

SymbolBidAskSpread

Spread

Sign up to the latest forex news and daily FX trading setups

Get started with a FREE $50,000 demo account