On the cards tonight is the release of the U.S. Federal Reserve's Federal Open Market Committee (FOMC) January meeting minutes.
As per my U.S Index Technical Trade note from earlier in the week, the markets have been consolidating as was expected and some profit taking might still be on the cards before another move higher.
Economic data that might affect the price action today:
Let's have a look at the technical charts for the Wall Street 30:
Wall Street 30
Looking at the Daily Chart of Wall Street 30 below, we can see the price action has had a solid run from breaking out of the descending channel. With the FOMC meeting minutes today and the Trade negotiations in the background we have seen the price starting to consolidate on the lower time frames. For the candle pattern enthusiasts, you can also see a couple of Doji candles forming supporting the indecision.
If all the fundamental factors playout positively then we might see another move higher to November 2018 highs around the 26294-price level.
Source – MetaTrader5
The 4Hour Chart has seen the price action consolidate just below the 25991-price level which happens to be the 100% Fibonacci Retracement level. The price action is waiting on direction from the FOMC meeting minutes later tonight.
Source – MetaTrader5
Delving even deeper into the price action when looking at the 1H Chart the consolidation becomes even clearer when looking for an entry point.
Remember that trading puts your capital at risk. Always trade cautiously and never above your means.
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