Heading into the US Federal Reserve’s interest rate decision, we were watching this key USD/JPY resistance level:
With the interest rate hike fully priced in, it was always going to be about the Fed’s expectations for monetary policy heading into 2017. With price at a major resistance level and starting to reject, we were looking to make a play at selling some intra-day weakness.
The hourly chart in Tuesday’s blog above shows the clear risk profile we had set up.
As we now know, the Fed raised rates and most importantly, forecast three more hikes in 2017. Much higher than the market had expected and with this misalignment of expectation came the repricing to the upside and blew our setups away.
Wednesday’s blog took a bigger picture view at how far Gold has fallen over the last few months:
This wasn’t a specific trading setup but more of a post to highlight just how decimated Gold has been and still how far between major higher time frame levels price still is.
Again, same story as above where the Fed shocked the market by giving an expectation for three more hikes in 2017 and Gold continued to be smashed as a result.
Still nowhere near those daily swing lows either. Commodities sure do know how to trend!
With the US Dollar continuing to rip faces off as it pushes higher, Cable and Fiber of course are getting smashed.
I’ve featured EUR/USD here because that support level had no chance of holding and we’ve seen some nice follow through in the intraday price action throughout yesterday and today.
There were plenty of sellers on Twitter trading this breakout so congratulations to the @VantageFX traders who got on board!
Enjoy your weekend!
Dane Williams – @VantageFX
Do you see opportunity trading forex? Trade with Australian regulated forex broker, Vantage FX.
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