Bring on the FOMC
Wednesday 26 January 2022
Good two-way business to be had within tight ranges whatever your bias as markets wait on the US Federal Reserve announcement and presser this evening. Some dovish tilt expected amid these fragile times but still signalling hikes from March seems to be the consensus but let's wait for the fact. Risk mood a little firmer again but jury remains out.
As ever, a classic case of not over-analysing or second-guessing but keeping your focus on price action in core and cross-pairs and identify recent ranges to see whether we hold or break and what levels present value for money. Patience will invariably be a virtue but don't confuse patience with being stubborn either in entry or exit. He who hesitates is often lost in these trading conditions.
GBPUSD: Again found support at the 1.3430-35 I've been highlighting here and Twitter but capping at 1.3500-20.
EURGBP: 0.8350-55 now providing support but equally sellers at 0.8380 and 0.8400 lurking amid the variable risk. Good two-way business to be had still. GBPJPY: Support now at 153.80 having broken back up but unable to get through 154.20 as the jury remains out.
EURUSD: Currently holding 1.1280-85 again after failure above 1.1310 amid the better-risk EUR supply. USDJPY: 114.10 resistance broken as I type after holding 113.80-85 amid the firmer risk and USD sentiment. EURJPY: 128.50-60 still the support line but failing into 129.00 amid the mixed risk plays. USDCHF: 0.9170 support now amid firmer risk and USD tones and with SNB ever vigilant and now pushing up through 0.9200. EURCHF: SNB ever-present and a support line now forming at 1.0360-70 but EUR sellers poised on the firmer risk tones.
AUDUSD: Capping at 0.7170 this time after the hold of 0.7150. More sellers poised into 0.7200 as jury remains out. USDCAD: 1.2600 support broken after failure at 1.2635 amid firmer risk/oil CAD demand. Buyers poised between 1.2550-60. BOC rate decision due at 17.00 GMT. Eate hike/hawkish tones expected by markets.
As we look at trading opportunities it's even more important not to over analyze but trade the price action with discipline and patience. I can help with this in my 1-2-1 sessions and now is the time, more than ever, to get on board with those if you haven't already done so. Contact me to take advantage of currently reduced prices.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.42 GMT