Very interesting day when it comes to price action. We saw price close below the resistance yesterday and into the area of indecision, however today we not only broke yesterdays low but closed back above the range and above yesterdays open.
Why is this significant? Simple answer: It isn't. Yet.
I say this because we have FOMC rate announcement tomorrow. Of course, the market has priced in a 0.25 bps hike, however that will still be enough of an announcement to provide volatility to allow price to pick it's next move. Now that we have grabbed liquidity (and created a bottom wick for the daily candle from Tuesday 18th July last week) I would expect the next leg up to begin.
With that being said, I will not be taking any long term trades ahead of the announcement tomorrow. It is always risky and no matter what happens in the first hour, there will be more moves to come.
Why is this significant? Simple answer: It isn't. Yet.
I say this because we have FOMC rate announcement tomorrow. Of course, the market has priced in a 0.25 bps hike, however that will still be enough of an announcement to provide volatility to allow price to pick it's next move. Now that we have grabbed liquidity (and created a bottom wick for the daily candle from Tuesday 18th July last week) I would expect the next leg up to begin.
With that being said, I will not be taking any long term trades ahead of the announcement tomorrow. It is always risky and no matter what happens in the first hour, there will be more moves to come.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.