Fed day

Like most fed days, we get a lot of volatility in the market before the statements come out. Since my post last night, we broke to the upside at 1.3770 and climbed to today's high of 1.3827, providing a small opportunity to take about 50 pips to the upside on my analysis from last night. That movement was quickly erased however in the last hour preceding the Fed's announcement on the funds rate along with some comments on the progress of the US economy. It's not clear to me at the moment what the price is indicating for the immediate term but at the moment we are back down to the 1.3750 decision area. This might be an possible place to go long pending rejection here or at 1.3730 again in the same scenario. With the current slight bullish trend not necessarily fading, we might still have room for more upside correction. The situation with the Greek PM is still ongoing but Sarkozy issued a pretty strong statement about that yesterday, so we'll have to wait and see how that plays out.

EDIT: Price still seems pretty chaotic at the moment with spread widening and spiky behavior. Price spiked back down below previous support at 1.3730 again and hasn't showed much of a sign of slowing down. Current price action has pushed the pair down over 40 pips in 20 minutes time. Currently the Australian dollar and the Canadian dollar all exhibiting concurrent behavior although the loonie inversely as the CAD is the quote currency in the pair. This might possibly be the next leg down in the corrective move from the last couple days' losses. If that's the case, I would expect this latest move to find support  at the 1.3690x - 1.370x level if it manages to stay below 1.3730 in the next few minutes. A break below, puts 1.3650 back in play for me.