On Tuesday, the bulls won back all the positions that was lost on Monday, and the price returned to the beginning of the week. Rally down and up took place on small volumes, as if to say that the market has not yet decided on the trend. It is understandable. Today, interest rates in the USA are coming out. On Wednesday, strong calendar news is expected at 9.00 Universal time (Euro), 12.30, 14.30, 18.00, 18.30 Universal time, (dollar). Also on Wednesday, the market may move sideways in anticipation of interest rates.
Trend analysis (Fig. 1).
On Wednesday, up to interest rates, a downward movement is possible with the target 1.1041 - a pullback level of 38.2% (blue dashed line). If the news comes out, according to the forecast - further upward movement.
Fig. 1 (daily chart).
Comprehensive analysis:
- indicator analysis - down;
- Fibonacci levels - down;
- volumes - down;
- candlestick analysis - down;
- trend analysis - up;
- Bollinger Lines - up;
- weekly schedule - up.
General conclusion:
On Wednesday, a downward movement in the side channel is expected. News at 18.00 Universal time may change the trend to the upward, then the first target with an upward movement of 1.1111 is the upper fractal.
The material has been provided by InstaForex Company - www.instaforex.com