Welcome to another live trading session. In today’s trading session, we went over the Federal Reserve cutting rates, and what trades we can take in response to their decision.
In yesterday’s session, we decided to take a short on GBPJPY. After some initial drawdown, the pair ended up hitting our first take profit and falling a further +60 pips. We are still waiting for GBPUSD to close below 1.26900, before entering the short trade to 1.23500. We did see many of the majors gain against the Dollar as the Federal Reserve cut their rates by 50 basis points. This was done to ensure the world economy can stay afloat among the increasing severity of Coronavirus.
We are currently eyeing a short trade for US Oil. We are expecting the entry to be available within the next few hours and have a near term target of 46.500 and a long term target of 44.00. During the session, we also take a scalp for GBPNZD which brought in +25 pips within a few minutes. Since then, the trade has reverted back to the entry.
Much of the markets are still reacting to Powell’s decision to cut rates, and thus much of the price action on the charts is a bit hard to gauge. Also, as it is a Tuesday, we will patiently wait for the Asian session to look for more trade setups. We also need to remember that we have the ADP Employment change being released tomorrow. This release will be a good predictor of Friday’s NFP numbers and should shake the markets upon it’s release. As always, be safe and trade responsibly.
Check Yesterday’s Blog Post: March 2nd, 2020
