In today’s live trading session, we went over the trades we took shortly before the FOMC press conference. We then discussed trade setups for AUDJPY, NZDJPY, CADJPY, and EURJPY.
During yesterday’s live session, we completed technical analysis and found a long setup for GBPUSD and a short for USDCHF. We entered both trades shortly before the 2:00 PM FOMC statement. Both trades quickly hit their first take profit. GBPUSD hit our first target of +31 pips but then reverted to entry to stop our partial position out. We saw price action continue to indicate a long, so we entered with a reduced (50%) position size to take advantage. This trade ended up hitting our stop loss of -32 pips after Powell’s comments. Fortunately, USDCHF was a lot kinder, and it’s currently up +85 pips in profit.
For the rest of the session today, we focused on finding setups to take before the week comes to a close. We identified a short opportunity for NZDJPY. This pair is down 1.7% and the higher timeframes suggest that more downside is on the way. Our final target is the previous high made during the start of Q1. We took a look at AUDJPY and noticed a similar setup to NZDJPY. A careful examination of other pairs against the Yen such as EURJPY and CADJPY also showed a bearish bias. We are set to enter at least two out of four of these trades.
Compared to past weeks, this week was heavily centered around one particular fundamental release. In today’s session, we noticed a lot of pairs have found a clear direction as a result. This is a good indication that we should have a very smooth time trading next week. As for the rest of this week, we will continue to milk out what we can from USDCHF and get entries into our Yen trades. As always, be safe and trade responsibly!
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