Good morning traders!
The hourly chart is interesting at the moment because we have bearish divergence, it’s looking more and more compelling, but it’s not the strongest signal we’ve ever seen.
The 5 minute chart is also interesting because we have broken back inside the Bollinger band from above signalling a sell, we also gapped lower this morning and have been consolidating inside a wedge waiting for a break. As I write this article, it’s broken lower and is testing horizontal support around 12600. Targets for shorts will be the daily S1, perhaps the Bollinger band mid-line 12535 and stretched targets on the day would be 12485.
Overall my algos are now beginning to conflict so signals may pause today, one says buy, two say sell and my personal view of the charts agrees with the selling bias, but I hate selling. Remember there will be volatility today, for many reasons, so if you want to gamble, then feel free, but I suspect many traders will be sitting this one out. Keep the powder dry, try to avoid the FOMO trade, despite the excitement these events can bring.
Best of luck trading
Dax Support & Resistance
|14 Day ATR||111.02|
|200 Day EMA||11381|