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FOMC is behind us. FED didn’t surprise, and it is on the course of gradually raising interest rates. We are looking into a stronger dollar and weaker GLD for the rest of the 2018. I closed my long USDJPY at 114.05, taking nice profit Im looking to sell EURUSD, GBPUSD and GLD hopefully tomorrow.
Elections are out of the way, democrats have the House, but Trump is willing to cooperate. FOMC tomorrow might have modest or no impact on dollar given the recent hike and no expectation of another. Look out for the tone (hawkish/dovish) USDJPY is in money and the stop moved to break even
The US mid-election results head to head so far. It could go either way. Final results tomorrow. We can expect a clear picture by 8am tomorrow (Wednesday 7th November) GMT, however it's likely that an exit poll will be available shortly after voting closes. As we learnt from history (people voted for Trump and Brexit) everything is possible! Missed GLD and USDCAD trade wasn’t attractive in terms of risk and reward. Waiting for EURUSD to top and AUDUSD to retrace back down to the support to buy it.
USDCAD broke even. EURUSD + GBPUSD + GLD bounced off major supports as expected Long USDJPY stopped out, Long USDJPY re-entered at 112.85 but cancelled Long GBPUSD not filled and cancelled Tomorrow NFP + earnings day so no trading ahead of the reports
The recent price action has been erratic and choppy. Since Friday EURUSD moved up and down between 1.1415 -1.1360. It looks like this consolidation will eventually resolve, most likely to the downside. I’m looking at a pending short at 1.3660 – just below the consolidation with the stop just above 1.1415 – the top of the consolidation and targets at the fresh lows. Let’s see how the price behaves tomorrow morning. I rarely place orders during Asian session.
I wasn’t able to catch yet another short trade on this move down. Three was an opportunity at 1.1400 with stop at 1.1430, it would be in money now. I need to come up with some alerting system to get me up from bed. It seems like best setups are just too early for me. I have moved the stop on my short to 1.1430, locking 70 pips for now. I don’t really recommend any more short positions as the price is near the support. It will likely consolidate and move sideways for a while. Its time to take pause for me. But if you are still aggressive, sell this one on rallies all day long!
My short is filled at 112.40, stop loss sits at 112.75, few pips above recent high, take profit at 111.60 for now. Decent, low risk trade. Fingers crossed it will stay down. I will be looking to add to short positions from here. As usual, the first signal will be a corrective rally with a touch of 8ema on 4hrs charts. Any rallies like that towards 112.60 will be sold. Stop losses should be placed at 112.75. If the price goes beyond it, bail!
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