As we can see from the TrendMap below we have divergence between the trends on the Weekly and Daily charts on many of the currency pairs just ahead of today’s FOMC meeting. Keep in mind we can see shifts on the Weekly trends during the course of the week, however they definitely hold more weight at week’s end with the shift still in place.
Interestingly the S&P’s and Yen, markets many of us see as leading indicator markets, are still showing coordination between these two influential time frames.
We saw some nice rallies off weekly support in EURJPY & GBPJPY this AM — see second chart below — as professional traders deemed further sell-offs ahead of today’s Fed announcment unlikely, and took the opportunity to play the short-covering bounce during the U.S. morning session.
One advantage the TrendMap lends us is it takes the subjectivity out of our decision making. The trend is either up or down.
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