Trade Charting

The US Federal reserve seemed to strike a Baby Bears Porridge tone with their latest messaging, acknowledging improving strength in the US economy but without offering any time line for the roll-back of stimulus. US stocks ended up closing the session higher but, so too did the US$ index which put pressure on the EUR/USD which is now below the key 1.17 level. The commodity currencies are holding up rather well, all things considered, and it might be worth keeping the iron ore price in mind here as it trades near a potential Fibonacci support level. The GBP pairs I monitor are trading within bullish-reversal descending wedge patterns so watch to see how these play out given today’s BoE rate statement.

Data:

DXY weekly: higher after FOMC but still within the weekly Cloud:

Markets:

S&P500 4hr: watch the 4,400 level and trend lines for any new b/o:

ASX-200 4hr: watch for any new TL b/o:

Iron Ore monthly: It is worth keeping the price of iron ore in mind when trading Aussie based instruments. There is a lot of negative news in this space BUT worth noting some potential support from the 61.8% Fibonacci retracement of the last swing High move: