- Markets are in a sideways trend as they await today's FOMC minutes. Nevertheless, we can still see a few interesting trading occasions on the charts.
- First, we will start with the USDCHF, where we have a false breakout of the down trendline and the 38.2% Fibonacci resistance. What’s more, the price recently created a bearish hammer on the daily chart. All this is negative for the price and our view on this instrument is bearish.
- Another instrument with a false breakout is WTI Oil, where the movement in the opposite direction to the breakout is already advanced. The price tried to form a head and shoulders pattern, but failed to go lower. So now, buyers have taken over and are playing out a scenario with the flag as a trend continuation pattern.
- Last up is GBPUSD, where we still have a buy signal despite today's drop. The recent decline can be considered only as a small correction (flag) of the upswing which broke the down trendline and the horizontal resistance at 1.316. As long as we are above this level, the sentiment is positive.
Alpari - Analytics
