There are a number of (very) interesting levels in play this week!
We could talk about 1300 in gold…
We could talk about the 1.38 handle in the EUR/USD
…16,300 in the Dow or 14,500 in the Nikkei
and they would all be relevant levels to my entries and risk assessment.
For me the most important level has been the 80.50 level in the U.S. Dollar Index in the post-FOMC Statement and Press Conference environment. What a shake up! And such confusion. The markets are questioning just how hawkish the Fed Chair intended to be and while it’s “easy” to buy the greenback off the 79.365/79.375 daily double bottom it’s not as easy to want to rally it through the 80.50 level – which still eludes the bulls.
This level would seem to be pretty tightly tied to the EUR/USD support which is eroding this week despite the U.S. Dollar’s inability to escape the pull of the 80.20 area (for now). A break of 80.50 would make me more EUR bearish and this would in turn affect my EUR/USD and EUR/CAD swing buys.
As always I welcome comments and questions and will be doing a FREE webinar this month to detail more about what I discussed in this week’s BabyPips.com update. (Be sure to join my free newsletter – the link it below – for information on when I will be holding this webinar.)
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