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.
Technical Analyst & Trader
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