May 3rd Price Action Pre/Post FOMC Decision
In this section I look at how the DAX 40 price action behaved 2 days prior leading up to the the Wednesday FOMC May meeting rate decision and meeting, during the Wednesday morning leading up to the FMOC decision and the morning after the decision.
Quick Links
CME FedWatch Tool Predictions
I follow the CME FedWatch Tool to get an idea into what the market expects how the Fed will move.
I use this and then go back through charts to see the price action PRE / POST Fed decision. You can find this tool here.
Predictions and Research Action
As you can see in the CME FedWatch Tool image below, the market expects a .25% interest rate rise. Now I need to go back to Feb decision and analyse two days previous of the decision. This will give me an idea into expected moves.
DAX 40 1 Day PRE FOMC
I normally look at the Monday and Tuesday PRE FOMC May meeting but its was a bank holiday, so I only have the Tuesday 2nd may to look at.
DAX 40 3rd May PRE Rate and Meeting
The below chart shows us the price action from the Uk session open at 8:00am and the close 16:45.
Analysis
- Second 5 minute candle break out
- Push higher through out the day, with 4 pull backs
DAX 40 POST FOMC Rate and Meeting
The below chart shows us the price action from the Uk session open at 8:00am and the close 16:45.
Analysis
- Second 5 minute candle break out
- Push higher through out the day, with 4 pull backs
