US dollar edged higher, a day before the conclusion of the Federal Reserve’s monetary policy meeting. Many will be looking for signs that the central bank may tightened monetary policy at a faster clip later this year to prevent the economy from running too hot. Expectations of rising rates tend to boost the dollar, as higher borrowing costs make the currency more attractive to yield-seeking investors.
Don’t be surprise when the results of the FOMC announces the rate rise tonight, the initial reaction might push the USD slightly higher but when the euphoria subsides, USD might take a dramatic plunge.
Overall there is strength in the CAD, USD and GBP and minor weaknesss in NZD,EUR and CHF.
EUR/USD was down 0.8% at 1.2241. Many may decide to take long positions in EUR/USD after the announcement from the FOMC when the euphoria subsides. Strongly suggest to do the same. In other words buy EUR/USD on dip at 1.2200 or lower.
On the data slate there’s UK Claimant Count Rate; UK Jobless Claims; UK Average Weekly Earnings; UK Unemployment Rate; UK Employment Change; UK Public Finances; UK Public Sector Net Borrowing; US Mortgage Applications; US Existing Home Sales; US Crude Oil Inventories; US FOMC Rate Decision and US Fed Chairman Jerome Powell News Conference.
My Personal Trading Plan
BUY EUR/USD @ 1.2200 OR BETTER – STOP @ 1.2150 – TARGET @ 1.2375
BUY GBP/USD @ 1.4000 OR BETTER – STOP @ 1.3940 – TARGET @ 1.4150
SELL USD/JPY @ 106.50 OR BETTER – STOP @ 107.10 – TARGET @ 105.40
BUY CL0518 @ 63.50 OR BETTER – STOP @ 63.00 – TARGET @ 65.00
BUY AUD/USD @ 0.7665 OR BETTER – STOP @ 0.7610 – TARGET @ 0.7780
BUY XAU @ 1312 OR BETTER – STOP @ 1308 – TARGET @ 1332
BUY XAG @ 16.20 OR BETTER – STOP @ 15.80 – TARGET @ 17.00
THE ABOVE BRIEF IS MY PERSONAL OPINION AND DOES NOT CONSTITUTE ANY PROMISES OR GUARANTEES OF PROFITS. TRADING IN CURRENCIES AND COMMODITIES ARE HIGH RISKS. YOU SHOULD NOT TAKE ANY MATERIAL POSTED AS RECOMMENDATION.
Writing a series means playing a long game,
investing considerable time and effort up front in
hopes of considerable returns down the road.
I'm so proud of my little blog, and so grateful to all of you
for support to keep it going.
If You are New in Trading --> Read Trading Education Center / Volume I.
What You Know About --> Fibonacci Retracement in Trending Market !
