In today’s live trading session, we went over our predictions for the European Central Bank (ECB) rate statement. We then found trade setups for USDCHF and USDJPY.
This week is the ECB rate statement which represents the interest rate decision for the European Union. Many of the forecasts indicate the rate will stay at 0.00%, as it has been for much of the year. Despite this, we know that the markets often react to interest rate decisions even when things are left unchanged. Technical analysis of EURUSD indicates that a possible long scenario is developing. Therefore, we predict a bullish result come Thursday.
For the rest of the session, we focused on the US Dollar Index (DXY). We identified a possible reversal zone at 93.40. This area has been an intraday resistance for the index and may lead to a selloff back to intraday support. We then found sell setups for USDJPY and USDCHF which coincide with a bearish US Dollar. We are currently waiting for price action to confirm our bearish bias before entering.
As yesterday was Labour day, our first trading day of the week is technically today. In that regard, we will treat today like we do Monday’s. We will ease into the trading week, ensuring that we do not fall into any traps. We also have a very huge fundamental day for the Euro on Thursday, so markets may consolidate until then anyways. As always, be safe and trade responsibly!
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