Wednesday’s Trade Watchlist: Preview
Rowan Crosby • 1 min read
It was a quiet day on forex markets in overnight trade, with the real story being the weakness in the USD. The U.S. Dollar Index fell for the first time in more than a week. We have been in a bearish channel and we finally broke out to the downside.
However, we are going to be hitting support if we fall any lower with 93.00 looking to provide support. Markets have been quiet as traders await the FOMC minutes which have the potential to rock markets.
While many are expecting the Fed to raise rates soon, any wavering in the minutes might be enough to push the USD down, and I expect that’s what we’ve been seeing with the recent weakness.
U.S. Dollar Index – 240 min Chart.
Wednesday’s Forex Watchlist
AUD/USD – I will be looking to sell the Aussie on spikes to 0.7800, which is support turned resistance.
NZD/USD – We are consolidating in what looks to be a bearish setup. I expect us to break to the downside in the coming days – likely post-FOMC.
USD/JPY – I think 112.00 looks to be a great level to buy. Longer term I expect the USD to rally and to break 113.00 resistance that has been holding up strongly.
All eyes will be on the FOMC minutes, due for release at 18:00 GMT.
Good luck today guys!