In today’s live trading session, we went over the forecasts for this week’s FOMC rate statement. We then found possible scenarios for the US Dollar Index and consequently its effect on the major currency pairs.
This week the Federal Open Market Committee (FOMC) will decide the interst rate moving forward for the United States. Forecasts suggest that the interest rate will remain the same at <0.25%. This has been the rate since the inception of the pandemic. Similar to last week’s ECB rate decision, we expect a reaction even if things remain unchanged.
As for technical analysis, we believe the US Dollar will be bearish this week. Currently, price action is creating new lower lows and is suggesting a possible move back down to 92.70. Based on this, we have determined a bearish bias for USDCAD. Last week the pair attempted to deviate from its downtrend to no avail, and since then has been stuck in consolidation. We will wait for a breakout, before entering short.
Like many of the past weeks, Mondays tend to be very slow so we will ease into our trading. We have a tremendous amount of news being released from Wednesday until the end of the week. We should see most of our trades and profits being made then. Let’s have a great trading week. As always. be safe and trade responsibly!
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