In our Daily Trade Watch, we look at some high probability trade setups that we can trade throughout the day. Today, we discuss a hawkish Fed and stronger USD upside as a potential result.
USD
As a result of last night’s fairly hawkish FOMC meeting, we have identified a strong potential setup sell trade in the EURUSD. If we see prices break below yesterday’s low of 1.1724, we are likely to see an explosive move to the downside. The other Dollar market is a sell trade in AUSUSD below Tuesday’s low of 0.7235. This would be a price level worth looking at.
As a result of continuing Dollar strength, we would then likely see the Gold market break out of its medium term consolidation and push to the downside once more.
JPY
Elsewhere, the US equities have eventually sold off due to the FOMC. If they continue to sell off, be sure to keep a close eye on EURJPY and GBPJPY for opportunities to sell below yesterday’s lows.
Hawkish Fed and Stronger USD – Full Analysis
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