Top Trade Setups – The FED’s Monetary Policy on Radar!
Whatsup traders. I hope you enjoyed our forex trading signals as we banked six winners ahead of the FOMC today. Did you check our Dec. 13 – Morning Brief? If no, do it now. This update will make more sense once you go through our morning brief. Let me share some hot setups worth watching today…
Top Setups To Trade Today
USD/JPY – Double Top, Is It Worth Selling Here?
The USD/JPY is consolidating below a solid resistance level of 114.500. That’s because the greenback and Japanese yen are standstills over thin trading volume ahead of FOMC today.
USDJPY – Daily Chart
On the daily timeframe, the pair has formed the Doji candle for the second time now. It’s signifying the neutral stance of investors, but when doji is followed by a strong bullish trend this represents the buyers are not confident any more about the bullish trend of the pair.
USD/JPY – Key Trading Levels
Support Resistance
112.4 113.62
112.02 114
111.41 114.61
Key Trading Level: 113.01
How Can FED Rate Hike Impact?
Today, the rate hike from the US Central Bank can cause a spike in the pair up to $114.500 and $115.450. Honestly, I think the pair will drop from the CMP (current market price) on the news release but to be more sure about trade, I will prefer to wait for the market to test these levels.
GBP/USD – ABCD Pattern Playing
The Cable is will decide it’s direction based on two reasons:
– UK Labor Market Data at 9:30 (GMT)
– US Fed Fund Rate at 19:00 (GMT)
GBPUSD – Daily Chart
In addition to fundamentals, the technical side is saying a lot about the pair. On the daily chart, the pair has formed ABCD pattern. B to C leg is almost complete at $1.33 (50% Fibo level) or it can go beyond this to $1.3235 (61.8% Fibo level).
At point C, I will be looking for a buying entry today. Check out these support and resistance levels.
GBP/USD – Key Trading Levels
Support Resistance
1.3328 1.3495
1.3276 1.3547
1.3192 1.363
Key Trading Level: 1.3411
How Can FED Rate Hike Impact?
Today, the Fed rate hike can drop the pair up to $1.3200 and then we can see a reversal in the market. As per the market sentiments, the rate hike is already priced in and investors will buy the fact. Stay tuned for Forex Trading Signals. Good luck and trade with care!
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