FED moved the market but technical analysis still works

FED moved the Market but technical analysis still Works

Movements that we see on the chart right now are in the same time very technical, which is a great thing also for those traders that tend to ignore the news and put more attention to the dots and lines on the chart.

First instrument today is the EURUSD, which on Wednesday, broke the local horizontal support on the 1.111 (yellow). That breakout was a legitimate signal to go short. For the past several hours we do have an upswing though but this is a normal price action movement, which is the broken support being tested as a newest resistance. First contact with the yellow area is positive for the sellers as we can see the bounce. As long, as the price will stay below the yellow line, the sell signal will be present.

FED cutting rates was also a fuel for bigger movements on the SP500. Here, the price eventually chose to go down. The movement is also technical, as we do have a triple top formation and the breakout of the 23,6% Fibonacci. The movement towards the 38,2% is very probable.

Last one is the CHFJPY so a battle of safe heavens. Currently, JPY is winning. The price respected the down trendline and broke the lower line of the flag pattern. That is a beautiful bearish price action movement and should be continued in the nearest future.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis