The pair lost more than 650 pips from the recent high clsoed below 20dsma after 3 months. A rally in the oil prices pushed the equities to days high.

“This is a schizophrenic market. Big up days, big down days. No real direction,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. “We need some stability in oil prices for the markets to calm down from here and become less volatile.”

“We have seen some flexibility from the brothers in Saudi and a change in tone from Russia,” Adel Abdel Mahdi, whose country is the second-largest producer in the Organization of the Petroleum Exporting Countries, said reported by CNBC.

In late Tuesday, the Oil pared its Tuesday’s gains closed with 0.6% marginal gains.After API data hits the wires, the WTI backs to 30.00$ levels day’s high made at 32.38.

US January 22 API crude oil inventories for the week +1137 million barrels, the biggest single-week increase since May 1996, before the value of +461 barrels.

Gasoline inventories +408 million barrels, the former value +470 barrels.

Distillate stocks API -63 million barrels, the former value of +150 barrels.

Crude oil inventories -66.4 API Cushing million barrels, the former value +6 barrels.

“This is a mega build As a result of refinery maintenance season. There can only be more weeks like this ahead. Inventories will only getlarger from here,” said John Kilduff, partner with Again Capital. “We’re going to see more fireworks.”

What’s on today?

New home sales,

FOMC statement and Federal funds rate

December New home sales- Economists expects new home sale slikely to jumps to 500K comapred to November’s 490K. Except August, the new home sales have beendisappointing since  June.

Bank of America Merrill Lynch: “Housing data generally benefit from favorable weather conditions, and this past December was the warmest on record. Indeed, the NAHB housing index for December showed a pick-up in the present sales component. Also, the employment report showed a strong improvement in the labor market that should underpin housing demand.”

Citigroup strategist Steve Englander: upcoming January 27 FOMC statement released by the resolution would still reflect the Fed’s “The US economy is still in the top track,” the confidence, given that the US economic data and the performance of the global market had, in that statement the resolution will be considered hawks, which means will be bullish for the dollar against the currencies G5; the Fed’s January meeting a serious deviation from the expected difficulty of meeting in December 2015 information, reported by Wall Street CN.

Technical view: The price respects the support zone finds between 1.4045 and 1.4035 200ma’s on the four-hour chart.Weakness remains only below these supprot levels.

In the daily cahrt 50sma finds at 1.3830 levels and earleir support base finds at 1.3800 rounded.

In the daily cahrt, the pair lost all the moving averages.

Trading supprot finds at 1.4080, 1.4035 and 1.4000

Resistance seems at 1.4130, 1.4200 and 1.4220

We can witness, the hourly RSI has been developing postive divergence. Beofre the FOMC outocme, we expect the pair likely to give a bounce to 1.4150 and 1.4200 levels. This view is valid unti lthe price hodls the 1.4030 levels.

Selling opens below 1.4070 and accelerates below 1.4030 towards 1.4000, 1.3950 , 1.3900 and 1.3830 levels. Real selling opens below 1.4000 few pips lower.