In today’s live trading session, we went over the possible outcomes for today’s FOMC press conference in relation to the US Dollar Index. We then discussed trade setups for GBPUSD and GBPJPY.
This afternoon at 2:00 PM EST the FOMC is unveiling its economic projections for the US economy as well as the interest rate moving forward. Based on technical analysis, we believe the US Dollar will have a bullish reaction to today’s news. Our reasoning is based on the behavior of the current price near support and the inability to break below. Taking a look at some of the major currency pairs also indicates a possible selloff as pairs start to make lower lows on the smaller timeframes.
As for trade setups to take, we will do what’s best and that is to sit on our hands until the event is over. We want to act upon facts, not on speculation. We are sure that regardless of a bearish or bullish reaction in the US Dollar, we will have setups for GBPUSD and GBPJPY. Both pairs are at key levels of support or consolidation, and an impulse move is what we want to catch to make effortless profits. The FOMC press conference will then provide us enough clarity to take trades for pairs like USDCAD and USDCHF.
As traders, it is important to practice discipline and patience. Due to the uncertainty that lies in the markets, especially during news releases, we want to minimize risk as much as possible. Therefore, we are electing to hold off on any trade entries until after the dust has settled. As always, be safe and trade responsibly!
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