In today’s live trading session, we went over the profits made from our trades taken yesterday. We then explained why we have a bearish bias for the major currency pairs in relation to tomorrow’s FOMC rate decision.
During yesterday’s session, we determined a promising setup for EURNZD. This trade was a short for EURNZD. The trade was entered once we received price action confirmation. This trade hit our take profit 1 and then reverted back to breakeven, we then entered again, at which point this pair fell +55 pips. After this trade, we entered a short for NZDJPY. This trade had virtually zero drawdown and immediately dropped to +80 pips of profit.
Based on our technical analysis, many of the majors are setting up to gain on the US Dollar. Could this be an indicator of tomorrow’s FOMC rate decision? Both EURUSD and GBPUSD are inching closer and closer to their respective resistances. Price action on the lower timeframe suggests that the current resistance will be broken and new highs will be made. Conversely, we see that both USDCHF and USDCAD are inching lower to make new lows.
When it comes to trading the news in Forex, it’s always best to do it with a plan. Our plan is to get entry into our setups. secure some profit and move our stops to breakeven before the rate decision is announced. If by the London session, we don’t have entries for the majors, we will seek to enter the minor currency pairs we analyzed today. As always be safe and trade responsibly!
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