Fed’s week didn’t provide any surprises.
The fact that the Fed was going to hike was well known and the markets reaction wasn’t a surprise also:
The Dollar exploded higher and climbed towards the completion of a bearish Crab pattern:
If you read this week’s Weekly Markets Analysis newsletter, or watched my videos on Snapchat (@marketzone), you should be familiar with the pattern shown above.
102-106$ is a weekly resistance zone that we should pay attention to in the coming weeks.
Stocks ($SPX, $DIA, $IWM) didn’t do much and pretty much consolidated throughout the week – Holidays break. That allowed me and the Elite Zone members to gain from bearish setups that we had in our weekly trading plan (see examples below)
Now the markets are heading for the Holidays Break and probably pause till mid January.
Elite Zone winners
Here are some examples of trade ideas that we had in the Elite Zone trading plans this week:
$EURNZD rallied from a weekly support zone that included a weekly structure and the bottom of a trading channel. The results wasn’t only a 230 pips winner but a bullish daily engulfing candle that may indicate that EURNZD is heading towards a weekly turn.
In our trading plan we had 2 support zones for GBPUSD. The first one was 1.25 (trend line) and the secondary one was the 50 MA line (1.24).
As you can see GBPUSD spiked below 1.24 and bounced back up from it. 100 pips winner against the strong Dollar’s trend.
BIDU started the week facing a weekly resistance zone. The bearish trading scenario we had on it suggested to short the stock despite the market’s bullish sentiment.
The trade generated near 3% gains for the members.
MSFT also presented a bearish setup towards FOMC. Microsoft was facing a weekly trend line resistance and the price also completed a bearish harmonic trading pattern (AB=CD).
MSFT closed the week just above our first target zone, generating 2% gains.
Loses are part of the game
Not everything went according to the plan last week. The Dollar’s rally generated strong continuation moves in USDJPY and EURUSD that violated major daily zones we tried to trade.
1.05 in EURUSD was a level we tried to buy and 116-117 was a strong resistance zone we tried to short – Both of these trades ended up with a loss.
Losing is part of the game and high risk trades, against a strong trend, should be dealt with extreme cautious and proper risk management.
Want to be part of the action? Join the Elite Zone members now