Mark time for FOMC....

Good morning everyone, its August already and F1 will soon be round the corner. The first and only night race (for now). It gets me all excited especially when you see the start of the preparation with all the barricades and flood lamps lining the road circuit.

Mid-week and a new month but guess market has decided to only spring into action probably post the FOMC rate decision and statement in the wee hours of Thursday.

Stop loss orders remain at exactly the same levels despite the 1.2305 being cleared yesterday. Sell stops are still lurking at 1.2225/20 and 1.2180/70.

Technically, daily momentum continues to point to further consolidation and seems like a precursor to a subsequent powerful breakout. 1.2400/20 remains an important level as a convincing break and close above will signal more ambitious gains to retest previous high of 1.2747. But for now, I maintain 60/40 probability for E$ to fall back into the 1.2080/40 area. Past 24hrs price action suggest strong support in the 1.2240/60 region and a base seems to have formed for E$ to be propelled higher to test 1.2400/20 but I do not foresee that level being taken out on the first test.

So to summarize, 1.2240/60 to hold (1.2200/20 news induced) and 1.2360/70 to hold on first test (stronger resistance at 1.2400/20).

E$ Monthly chart

All the best!