Markets go crazy! Yesterday FOMC resulted in strengthening of the dollar, due to the possibility of faster interest rates increases, which is one of the strongest signals when it comes to currency value rally. Maybe it will start broader trend and the end of the 2014 will belong definitely to the American dollar. Yen weakens also, giving some investment opportunities. Here we go:
Aussie also find itself inside the yesterday trend and fell due to dollar strengthening. But there is still 30 pips left to the key support and look for signals that allow to open long positions. For now, we can just wait.
Cross approached key resistance, which previously acted as support two times and then confirmed as the opposite level. Now it is worth to look for clear Price Action sell signals, targeting support vicinity (136.20).
Single currency to American dollar slipped below 1.3300 and now with huge probability will fall further. The level which may stop the most popular currency pair is 1.3100. For now, we should look for sell signals (in the case of upward correction). The best scenario would be testing 1.3300 from below and rejecting the level, which only confirms that it is a resistance now.
Price reaches really important resistance zone. It worked many times as a support and lastly as a resistance. Selling signal (from Price Action) will be a great opportunity to activate short positioning.
The real star of yesterday session – Ninja. Japanese yen was the weakest currency on the previous session, when the USD the strongest one. It had to end with really strong move. Price found itself in important resistance zone and if currency has to go back to the broad consolidation, it should rebound. In this case we may consider short positions – but momentum jest really strong, so we have to be careful. It will be much better to follow the momentum and search for longs in case of correction. Target of such position? The next resistance level at 105.40.