Closed UJ short at 97.27, -15 pips

17.55 bst

Closed UJ short at 97.27, for a small loss of -15 pips.

All pairs are sitting ‘on the fences’ – at key Fibo levels and resistance or support. They could move either way after the FOMC and probably reverse tomorrow after the ECB! The DXY is at a big 50% Fibo where we can expect a bounce, which implies UJ will rise. Adding weight to that view is the fact that EU is up against its own 50% Fibo at 1.3230. GU is a little short of its key Fibo level at 1.5610. All-in-all the field is tilted towards a strong dollar move.

Technically speaking the charts are bullish EU & GU, neutral to bearish EJ and UJ. However both EU and GU are at strong resistance which would normally mean a turn here.

On the other hand, positioning in UJ suggests lots of big stops below current levels and traders will try to target those stops, using the FOMC announcement as a trigger.

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