In today’s live trading session, we went over the current status of the US Dollar Index before tomorrow’s FOMC rate decision.
At the moment the US Dollar Index is having a tug-of-war at the 93.00 psychological level. We will continuously monitor price action at this level as it will give us more insight into the direction of the major and minor currency pairs. We believe bullish price action at this level will result in a push to 93.40. Conversely, bearish price action could take the index down to 92.70.
As for trades to take, the major currency pairs such as EURUSD and GBPUSD are giving mixed signals. At the moment, price action is struggling to go lower after rejecting yesterday’s high. On the smaller timeframe, we are seeing signs of a possible reversal. For that reason, we are electing to sit on our hands. Instead. we are looking to take a long for EURNZD. We believe there is an intraday opportunity on the 4hr timeframe with a potential gain of +110 pips.
Starting tomorrow, the volume in the markets will pick up substantially. The all-important FOMC rate decision is tomorrow and we expect rates to remain unchanged. We are looking to get entry into one or two trades before madness unfolds. As always, be safe and trade responsibly!