Market News Trading

FOMC News Release

News Trading in Forex

1 hour Market News Release FOMC

The daily EUR USD trading high of  the 11th of June at 1.2669 is another key level (blue line). Today, the Euro found some support at this key level in the Asian and beginning of the European session (hourly chart above). The Euro USD traded in a tight range prior to the FOMC market news release.

On the 5 min chart (below) we see that market formed a kind of Head & Shoulders pattern (ABCDE). The break of the brown neckline got confirmed with the news release at 5:30 p.m. GMT.

Just prior to the news release at 5:25 p.m. the Euro Dollar bounced back from the 100 % fib extension from C-D at E and market closed in the trading range of the preceding 5 min candle.

 After the news release the Euro (5 min candle-5:30) initially moved down to the Head & Shoulders target at around 1.2665 (B-D at F - blue circle, F= neckline break), also 161% fib extension C-D at E. From there market bounced back before the Euro resumed its downtrend to the weekly pivot point where the Euro found strong support and moved up again.

The Eur USD found some resistance at the brown neckline (touched-respected it, red circle) before market finally broke the neckline to the upside with the beginning of the new hourly candle at 6 p.m.. The chance of a temporary continuation of the uptrend and a breach of the high of the 5 p.m. hourly candle got increased due to the 5 p.m. hourly rejection candle (long tail) and the hourly close at the neckline. The 6 p.m. hourly candle breached yesterday's trading high.

Volatile Trading Environment

The volatile market after the news release led to a clearing of the stops below and above today's "pre-new release" trading session, which is not untypical for a news release (stop fishing targets).

5 min FOMC news trading