Wednesday is a FED day and all investors are waiting for the rate decision, statement and the economic projections from the FOMC. Ahead of this, at the beginning of the European session, DAX is looking firm. The price bounced nicely from the 13080 support with a bullish candle with a long tail. Currently we are fighting on the 13180 points but it looks like this resistance will be easily broken and price will go north.
USDJPY very often shows high correlation with indices. It is not different this time. The price bounced nicely from the 113.1 support creating a candle with a long tail. That is a buy signal and the price should aim higher. Obviously all that is based on the technical analysis and it all can be easily cancelled and declined by the FOMC. Unfortunately trading USD before the FED is a big lottery.
If so, maybe we can look at the EURCHF. The pair is in the long-term rising wedge, which actually is a bearish pattern. Support line is under the pressure recently and the buyers cannot create a bounce. That creates an occasion for a breakout. Pending order here would not be a bad idea.
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