Forex Trading Room - Gold Pushes to 1981 + USDJPY Ready to Short?

In today’s live trading session, we went over the current status of our EURUSD trade and what we expect next for the US Dollar Index (DXY).

During yesterday’s live session, we went over EURUSD and determined the pair still had a sizable amount of upside potential. We have taken a swing-trade approach to this trade and have entered with reduced position size. We are currently in some drawdown but expect the next leg up any minute now. The other trade discussed was for Gold. We had a simple 1hr entry criteria for this trade, and after it was satisfied, Gold shot up +380 pips to the upside. Since then, Gold has pulled back and may give us another entry long once we clear yesterday’s high.

As for new trade setups to take, we have our eyes set on a short for USDJPY. This trade has enormous downside potential as the US Dollar continues to weaken and simultaneously the Yen continues to strengthen. We are targeting the previous weekly low made in back in March of this year. The last setup we took a look at was an intraday short for EURAUD as the pair has returned to its previous daily range.

Tomorrow we have the FOMC rate statement and this event will definitely be a market-mover. We expect interest rates to remain unchanged, but Powell’s comments are a whole other ordeal. The US Dollar could be bullish or bearish, depending on what Powell sees both in the short and long term for the economy. As always be safe and trade responsibly!