After calling the top of the equity market yesterday and watching them melt into the close, they have since rebounded above yesterday's highs closing at 778 heading into tomorrow's FOMC announcement. I had to be the hero, didn't I? The S&P's are still, however, below my final 782 resistance level, but there is quite a bit of momentum behind this move so I remain cautious.

I didn't place a single trade in the currency market today. In fact, I didn't even load up my trading platform. For the second day in a row, EUR/USD is lagging the equity market strength indicating the dollar is not confirming this equity market move. And again, we are still south of 782, so I'm holding out hope that we sell off from here allowing the dollar to move higher.



Moreover, this EUR/USD price structure is packed with overlap screaming of corrective structure. I am purposing the ending diagonal here, but notice that wave 4 does not overlap wave 2, so the structure is not ideal. As a function of discipline, I will never chase this higher, yet I cannot yet fade this move until I know what the S&P does with 782. Fed tomorrow at 2:15 p.m. could provide much needed answers. Until then, I am firmly seated on top of my hands.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.