EUR/USD Forex Daily Pre-FOMC
Al Brooks | Jun 16, 2021 09:33AM ET
EUR/USD has been in a wedge bull flag since May 28. Yesterday it triggered a wedge buy signal by going above Monday’s high. The breakout was small and closed yesterday around Monday’s high instead of far above it. This is a weak entry for the bulls.
Traders are still deciding if the 3-week selloff is a bull flag in the bull trend that began on May 13, while bears hope it is a trend reversal down.
We have nested trading ranges on daily, weekly, and monthly charts, so traders expect reversals. Trading ranges tend to break below support, and above resistance before reversing. This sell off might need to fall below the May 13 low, before the bulls will buy again.
h2 EUR/USD forex trading on 5-minute chart/h2- Small trading range so far today. Day traders are scalping in both directions.
- There is the June FOMC report at 11 am PT today. Since it can result in a big move in all financial markets, day traders should exit ahead of the report.
- There is usually a quick move up and down after the report. Day traders should wait at least 10 minutes before resuming trading.
- They should be open to anything, which means a strong trend in either direction, as well as a reversal.
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