In today’s live trading session, we went over the profits made by our GBPUSD trade. We then talked about trade setups for USDCHF and EURUSD.
Shortly after yesterday’s market close, we were able to get entry into our GBPUSD short setup. This trade was based on the current downtrend and the clearance of recent support. Furthermore, we have had a bullish bias on the US Dollar Index since the start of the week. This trade eventually started to play out during the London session and dropped as far as +65 pips. Since then, it has retraced back near entry, and we are looking to enter again.
As for future trade ideas, we have our eyes set on a short for EURUSD and a long for USDCHF. Both pairs show promising price action that suggests a trend reversal. If the DXY continues to rise, like we expect it to do, we should see both trade setups play out in our favor. In addition, EURUSD and USDCHF are inversely correlated so this trade pairing can prove to be rewarding.
Tomorrow we have both Jerome Powell and treasury Mnuchin testifying in regards to the current monetary policy. We should be due for extreme volatility during that time period and advise traders to minimize risk. We will try to get entry into some minor currency pairs to avoid any surprises. As always, be safe and trade responsibly!
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