15 Dec 2016

15 Dec 2016

FOMC stands for Federal Open Market Committee. It is the body that vote to decide what is the interest rate the Federal Reserve of US should set.

Knowing very well the Fed would increase interest rate last night at 0300 SGT, the pound continued to ran up from 1.255 to 1.272. For what the reason? The climb begins yesterday morning with no fundamental to support that. With UK released of a better claimant count at 1730 SGT, which gives reasons for climb.

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It was a massive swing with 200 pips up then 200 pips down in a day.

I am expecting a quiet Asian morning.Action will starts after 1730 SGT when UK reports retail sales. But it will not be a big impact unless MPC surprise with an intention to raise interest rate too for the pound at 2000 SGT.

Now with the support at 1.255 broken and the price action now below at 1.252, the next support is at 1.250 then 1.242. WMA3 stills hover above EMA21/EMA55 which means a potential for the pound to rebound above 1.255 to a resistance at 1.26/1.262 (mid of EMA100). As seen EMA 100 is converging towards EMA55. EMA100 has been high at 1.275, 1.272 and now at 1.270.

The pound may stay below 1.255 and rnage between 1.250.

If it breaks above 1.255, it may range between 1.260. Otherwise if it continues it downward move which CCI support that trend (as CCI is out of its lower BB but has not reverse), it will gain towards 1.242