Are you guys watching your forex charts right now? I) mean the charts of the major forex pairs which include the USD. What do you make of this 100 pip whipsaw? Dangerous times right? I just left the computer for 10 minutes and when I came back I saw a very long upper candlestick shadow and a very long lower shadow in the H1 EUR/USD chart.
Didn´t know which one came first and whether our EUR/USD short term sell forex signal hit take profit or stop loss. I immediately changed to the one minute chart and was relieved to see that the dip came before the surge. You know what that means, 25 green pips for us and for you too if you are following our forex signals.
At the moment we are right where we started in most forex pairs, unchanged. So all this anticipation and preparation for nothing. This happens pretty often in forex; when you do your homework and can´t wait for an event the forex market does nothing and it takes off when you least expect. At least we went through it with a nice 80 pips profit from our two sell forex signals, in EUR/USD and GBP/USD.
AUD/USD is little changed after Yellen´s speach
But what did Yellen actually say? Right in the beginning, she said that the domestic and global economic conditions have improved in the recent months, which has strengthened the case for a rate hike. The forex market took this as a hint for a September rate hike and the USD spiked about 50 pips higher.
But Yellen couldn´t get out of her dovish skin and she ended the conversation about interest rate hikes just there, only to be totally focused on the tools that FED has at their disposition in case of a recession and all that nonsense. Don´t get me wrong, the time has come to discuss the toolkit the FED and other central banks have available and what might be added/changed, but it doesn´t move the market so it offers no value to our forex traders.
Yellen being dovish was already priced in, so if there is any surprise in late Friday afternoon trading it will probably positive for the USD. Anyway, we leave you here with our live market coverage (unless the WW3 breaks out) and hope you enjoyed your 200 pip profit if you followed our forex signals. Will catch on with you guys on Sunday with our weekly review and new forex signals when the Tokyo session starts.