US Dollar Index Touches 93.60 But Bearish Bias Still Remains

In today’s live trading session, we went over the FOMC rate decision and what that may entail for the US Dollar. We then found trade setups for EURUSD and USDJPY.

Yesterday the FOMC decided to keep interest rates unchanged. We predicted this would occur and we also predicted that the US Dollar would have a bullish reaction to this news. Both events came to fruition like expected, but new information today has cooled the Dollar off. This morning the US economy announced that 860,000 Americans filed for unemployment versus a forecast of 825,000. This news immediately brought the Dollar back to reality, which lies near 93.00.

Due to Dollar’s bearish tone, we have decided to take a long for EURUSD. This pair is also coming off major 4hr support and we observed a bullish engulfing candle as well. This morning’s price action was bullish enough for us to enter the trade during the session. We then found a swing short for USDJPY. This pair broke recent support today, and if we get daily confirmation, we will enter short and target this year’s lows.

A slow week for us in the Forex Trading Room, but a profitable one nonetheless. The fundamental schedule for the rest of the week is clear so we will have a chance to get into a few more trades before Friday’s market close. As always be safe and trade responsibly!