Yesterday a magnificent example of how to use price behavior and how to anticipate a high probability price direction or move just by looking at how the prices behave at significant points after the announcement and how the dollar went into a free-fall as a reaction to FOMC which basically said they will do nothing with regards to interest rates but maybe some bring clarity to the Capital markets ,the market turned ugly as they perceived them as negative remarks and yet with all this capitulation the prices gave us a classic price behavior action at the significant points and allowed us to share with you the points indentifying the underline strength in the US Dollar and to attempt to be buyers rather than sellers . Please August 10th Blog
But what’s more important than the actual Looking to days of the chart of a technical perspective we can see that we have follow-through buying yesterday in the dollar the dollar was strong against all currencies except for the Japanese yen which was quite strong , be dollar even gave us a major since he by reading below the ¥85 mark of 84.72.
As of this writing the dollar is now trading above the ¥85 mark and we’re on track to generate a major buy signal.
The dollar continued its upward against the Canadian dollar and Swiss franc and the British he saw all her bias should be trying to find a traceable along the US dollar to buy the pullbacks and if we decide to take the sorts of that we should appreciate the fact that we’re taking a trade in the opposite of the trend so we should you should not overstayed our welcome
The announcement by the FOMC stated that the Fed would target the feds balance sheet instead of targeting the reserves or interest rate. This is quite an important decision because it gives clarity to the market , because the weather committee have chosen to do is to make open its operational activities much cleaner and to be understood. We will be able today to know what the Fed is doing and to be able to track it with clarity and without confusion .