Last week’s rate hike generated a spike in volatility that has awaken the FX market from its recent sleep.
The CPI data, the rate hike and the Fed’s press conference created several trading opportunities that we, in the Elite Zone, exploited to end another trading week in green:
Patiently Waiting for the Dollar
My assumption was that if the Fed will raise rate, as expected, that will boost the Dollar that has suffered a strong selling pressure recently.
The pairs I was watching were USDJPY, EURUSD, USDCAD and GBPUSD. When it comes to pairs that aren’t directly related to the Dollar, I watched AUDJPY and AUDNZD.
The bad CPI numbers that came out before Wednesdays’ U.S session open, sent the Dollar lower and that drove the pairs I was focused on straight into my entry zones…
Following the Fed’s decision to hike, the Dollar got a short term boost and my USDCAD, USDJPY trades turned to winners:
As you can see, I used the stop loss hunting that happened seconds before the actual rate announcement to catch USDJPY at the bottom of its bearish move.
The Buy Zone is USDCAD was 1.315-1.32.
USDCAD spiked into our Buy Zone and when it rallied back above 1.32 my buy order was triggered.
In AUDJPY I had a potential breakout setup forming as AUDJPY was struggling to break above its 200 days MA line.
With the help of USDJPY and good numbers from Australia, AUDJPY broke above its 200 days MA line and continued the trend line breakout move till the end of the trading week.
My personal trades (USDJPY, USDCAD and AUDNZD) generated more than 300 pips of profit last week.
The trades I chose not to trade but setups were sent to Elite Zone members generated almost 400 additional pips (AUDJPY with 130 pips, EURUSD and GBPUSD with 100-130 pips each)
For me, the added value to my Elite Zone members (besides the pips/money of course) was the lesson that if you are patient enough and wait for the RIGHT opportunities, the market will reward you… sometimes.
The CPI numbers that came on Fed’s day allowed us to catch the bullish Dollar move at the best entry levels with tight stop loss and high potential reward.