Trading Plan for the days action 4/05/22

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Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.

US indexes were choppy but managed to hold onto the previous sessions gains as all eyes are now on the coming FOMC meeting (early hours of Thursday morning).

FOMC out at 4am AEST – Expecting a lift from 0.50% to 1.00%

The SPI200/ASX200 were supported into the US close and look set to rally up through resistance. The ASX200 may look to rally up and through 7366 for a longer term leg higher as long as 7300 can hold. If 7366 holds, then I expect a pending selloff as a longer term break below 7300 will confirm a lower high. For the SPI200, key levels are 7336 and 7265. The DOW spent the session chopping around 33165 lacking any direction for the session. Expect to see more of the same today and ahead on the FMOC meeting where the Fed is expected to raise the rates by 0.50%. Hang Seng initially flushed the lows around 20690 before ramping higher and holding around 21040 into the US close. Will be watching for either an opening flush higher and then lower high off 21190 or for price to again ramp higher off 21190. The underlying Index momentum is easing up near highs so may expect a grind lower. The Nikkei has a bank holiday today so no trading for me.

Cryptos were pushed lower off resistance levels and the selling accelerated into the US open. Bitcoin moved down from the 38630 area and into support around 37700. The support area will be key today for either a flush through and retracement higher or continuation lower. Ethereum also broke down into support around 2773 to flush recent lows. Bulls will need to hold price up off the levels otherwise a selloff may be on the cards.

Spot Gold initially sold lower before price pushed back up to retest the 1875 area. Bulls will be wanting to see a higher low hold but I expect that will depend on the USD being sold off into FOMC. Price action could just as easily continue lower especially if the Fed re-iterates an aggressive stance towards inflation and interest rates…either way, I would expect gold to be subdued ahead of the FOMC release.

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SPI200 Index