Riding the “Post-Interest Rate Decision” Rollercoasters
Hey guys, choppy market action today after yesterday’s interest rate decision - 0.5% cut and more cuts expected, so the headlines read: broad bearishness for the dollar. Which is why we focused on some short-term SHORT setups on EURUSD, GBPUSD At times like this when the market actors agree on a certain scenario (in our case the dollar falling), I’m thinking they will probably be right, but NOT RIGHT AWAY. Remember - the fundamentals are not what they appear…
EURCHF displayed an excellent shorting opportunity (a perfect wave formation backed up by divergences and trendline break) - we went in 1.6103 and closed the position during US session for 71 pips (the trade of the day).
We also took a short GBPJPY - low risk position for a large target - our 30 pips stop got hit by 2 pips and price rallied to our target just after that - better luck next time!
Also, took a short EURUSD on a retracement however the pair went up again in a 3rd test up and we got stopped out for -35.
Overall a positive day, however the effects of rollercoaster rides in the main currency pairs obviously didn’t help our technicals.
We also observed bullish scenarios in EURCAD and bearish on all yen pairs - it was only during US session that the yen started to gain some ground (after the US jobless claims report) .
Let’s see what tomorrow brings - I’m still bearish on EURUSD and GBPUSD, for as long as they don’t break the triple tops on the large charts, in which case I’m expecting a sharp rally up that would put an end to the current correction.