The moves became a little bigger yesterday going into the tomorrow’s Fed interest rate announcement. The 60 minute EUR/USD had a wedge bear flag after a 2 week sell off, and last night had a 3rd push down from that bear flag. The odds are that the selling will stop and the overnight bear channel will convert into a trading range or swing up today that should last at least a couple of hours.
The EUR/JPY is should also try to rally today after breaking above a 60 minute bull flag and pulling back to test the breakout last night.
The USD/JPY was strong overnight, but the rally is near the top of the 60 minute trading range of the past week, and it might stall soon and enter a trading range on the 5 minute chart.
The USD/CAD daily chart remains one of the best with the potential for a swing of several hundred points that will probably begin over the next week or two. Day traders learning how to trade the markets should watch for a strong breakout up or down, and then look to enter. If the breakout fails, look to take the reversal trade.