Welcome to another live trading session. In today’s webinar, we went over the current status of our trades and then discussed the possible outcomes of the FOMC Press Conference later this afternoon.
In yesterday’s session, we determined a short bias for NZDCAD after the pair had broken a major daily support level. However, the current price action is suggesting a deep retrace before the short momentum continues. We have elected to close the trade in a minor loss, to avoid the possibility of suffering a major one. It is always better to cut your losses short when a trade is going against you, rather than holding the trade out of pride.
In today’s session, we were able to find a trade setup for USDCAD. Although the trade is dependent on the outcome of the FOMC Press Conference, we believe that the pair will ultimately make a run to 1.33500. Since last week, we have been patiently waiting to enter this trade. There may be a chance to enter this trade shortly after the news this afternoon.
We had entered a sell for XAUUSD (Gold) yesterday, but early this morning, the precious metal had stopped us out. The current widespread fear of Coronvirus has introduced investing into safe-havens, like XAUUSD (Gold). We do believe, that the FOMC Rate Decision will be the catalyst to pushing the precious metal back down. If this is the case, we will reenter the short setup we initially had in mind.
The majors have had a slow start to this week as the markets await for the FOMC Press Conference to get an understanding of what Q1 for the US Dollar may look like. We also have the US GDP being released tomorrow as well, so be prepared for a rocky end of the week. With that being said, I will see you all tomorrow for another live trading session. As always, be safe and trade responsibly!
Check Out Yesterday’s Blog Post: January 28th, 2020
