Uncertainty All Over Markets But USD Is Still Alive
Skerdian Meta • 2 min read
After the FOMC minutes yesterday, the USD had a little wobble. There were lots of expectations, but as we mentioned in our last Forex Update, What to do with USD after FOMC minutes, the minutes offered little to either the bears or bulls.
Uncertainty was the theme of the FOMC minutes; there was no prevailing opinion on the balance sheet, some members were in favor of shrinking it in a couple of months, while the rest wanted to keep it going until they are convinced that there's no turning back for the US economy.
The softer inflation numbers we have seen recently were also noticed, but the FED didn´t seem too worried about it because they saw them as transitionary.
As we said, the market was sort of confused after the minutes, I guess forex traders were waiting for some clear signals to finally take a direction after screwing around with the Buck during this week.
They/we didn´t get any signals so they´re confused now and don’t know which side to take. To me, it seems like there is a slight demand in USD.
USD/JPY has climbed about 50 pips after trying the bottom early this morning and is now threatening the upside.
The downtrend is still intact
EUR/USD is also keeping this week´s downtrend intact. The price has climbed above the 50 SMA (yellow), but stochastic is almost overbought and the buyers seem to have run out of steam, so this is a good selling opportunity in my opinion.
We already have 2 forex signals open, so we´ll stay out of this forex trade, but if it suits your money management techniques, you might as well take the trade with a 30-40 pip target.
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