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Ahead of the FOMC, Dollar gives us a buy signal

Tomasz Wiśniewski

For the FX traders, today is all about the FED and all the events surrounding this institution like the rate decision, statement and economic projections. Ahead of that, USD is getting stronger and on few instruments, that appreciation is giving us a signal to buy the Dollar. Isn’t that a bit too early?

USDCAD is attacking the upper line of the ascending triangle pattern. H4 candle closing above the horizontal resistance will give us a mid-term buy signal.

USDCHF is breaking the upper line of the flag formation. That is very positive but for the proper buy signal, we need to see the breakout of the horizontal resistance on the 0.988 first.

NZDUSD defended the lower line of the rectangle pattern but the selling pressure is still very high. Daily chart looks rather negative as the last few candles are shooting stars, which show us constant bullish weakness.

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

This article was originally posted on FX Empire