Excitement! Action! Movement! After the FOMC meeting minutes were released at 4am Wednesday morning Queensland time, EURUSD broke the lovely channel I had drawn for it and plummet like a plummeting thing.
(4 hour EURUSD chart)
While excited I was to discover the linear regression channel tool in Metatrader 4 and apply it to a chart, for the last two weeks EURUSD has failed to make any higher highs which should have indicated something was about to happen. Well, it did, and the move after FOMC was violent and sudden.
Luckily I had several (mostly demo) systems in place to capture breakouts, and they all did very well this last week.
While it's exciting to see some movement in EURUSD and capture some pips, the daily chart shows the move down may be limited already. Price has really only just broken back through the daily 100 period simple moving average. Also, from the above 4 hour chart, the horizontal yellow line indicates the 1.30 support area which may be tough to break through.
(Daily EURUSD chart with 100 & 200 simple moving averages plotted)
Also, price action has penetrated the cloud on the Ichimoku Kinko Hyo chart, but not escaped it. The bottom of the cloud may act as support.
(Daily EURUSD chart with Ichimoku Kinko Hyo)
We'll see what happens next week after the Easter holidays.
