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Jason Sen

Important short-term trading levels for today's FOMC rate announcement

For EUR/USD the first resistance level at 1.1180/90 is the key. Bulls need a break above here to target minor resistance at 1.1265/70 and then stronger three-month trendline resistance at 1.1320/30. The first support level at 1.1150/45 is the only support to note today. A break lower is more negative therefore and targets 1.1125/20, then 1.1070/65 and the August lows at 1.1048/43.

If we fall as low as the August lows this could be a good opportunity for profit-taking on short positions. There’s good support from here down to the three-month trendline at 1.1030 which could hold the downside.

The outlook for AUD/USD remains negative after the failure to beat strong resistance at 7550/55 so far this week, targeting minor support at 7508/00. A break below 7490 would target 7475/70 and then 7450/40 for a profit-taking opportunity on any remaining shorts. Important longer-term support at 7415/05 could equally provide a buying opportunity, but long positions would need stops below 7380.

The first resistance level is at 7550/55 while short positions would need stops above 7580. A break higher is more positive for today and targets minor resistance at 7615/20, then 7655/60 and perhaps as far as 7690/95.

For USD/JPY the main resistance is at 102.00/102.10 – this is the big level to watch today. Holding below this level re-targets 101.65/55, then 101.40 and the September lows so far at 101.25. These are not good support levels, however, and a break lower targets 101.00/100.95, then 100.65/60, 100.40 and 100.10/00.

The first resistance level at 102.00/102.10 is the most important of the day but short positions would need stops above 102.25. Above here we could see a recovery to minor resistance at 102.55/60 and then major four-month trendline resistance at 102.85/90. If this level holds we are still in a bear trend. A break above here (with a close for confirmation) would be a medium-term buy signal and initially targets 103.35 this week.

Jason Sen
Technical Analyst & Trader

For more information, trading education and offers visit Intertrader

The content of this article is the personal opinion of the author and not Intertrader. The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest. Nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.

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