Small trade, so so reaction. Not sure I ever get too thrilled about such short term stuff, but here ‘goes: Two charts here – same pair, a 3 minute and a 15 minute – intraday fade on EUR/USD. First is the short term:
– A common pattern – triple tap followed by a seemingly aggressive thrust into flows.
– FOMC due up – if there is anything I've learned from years of trading it's that when directly ahead of a major event, fresh highs and lows are rare unless other severe stimulus is backing a move.
– Lowest low to swing high measured retracement
And the longer term chart:
– Two possible points here as I see it – always look beyond the absolute highs and lows and use “inner” support. The one derived from the last leg (Line B) proved the more useful. Line A was from the longer range of course.
Perfect trade? Meh, but this is the logic. Decent activity for a relatively quiet morning.