TRENDING:

XAU/USD

Silver

Trading ideas: Shorten USD after Fed decision

Wojciech Matysiak MyFXspot.com

In line with expectations, the Federal Reserve raised the target range for the fed funds rate by 25 bp to 1.25% - 1.50%. The post-meeting statement highlighted a strengthened economic outlook and the Committee’s increased confidence to hit the inflation target before the end of this year.

Along the same lines, the update Summary of Economic Projections showed stronger growth forecast for 2018 and 2019 (reflecting the impact of the fiscal stimulus), a lower path for the jobless rate, and the anticipation that core inflation will exceed 2% next year.

This is how MyFXspot.com trades today:

EUR/USD

Trading strategy: Long

Open: 1.2330

Target: 1.2550

Stop-loss: 1.2245

Recommended size: 2.11 mini lots per $10,000 in your account

Short analysis: The pair climbs back above the daily cloud top as well as the 10, 21 & 55-Day SMAs. RSIs are biased up again and give us bullish momentum. We opened EUR/USD long at 1.2340 for 1.2550.

GBP/USD

Trading strategy: Long

Open: 1.4085

Target: 1.4300

Stop-loss: 1.3985

Recommended size: 2.00 mini lots per $10,000 in your account

Short analysis: The GBP/USD bulls have broken the 30-day upper bollinger-band, (1.4088), which encouraged us to open a long position. Fourteen-day momentum remains positive, the target is 1.4300.

USD/JPY

Trading strategy: Short

Open: 106.00

Target: 1004.00

Stop-loss: 107.00

Recommended size: 2.12 mini lots per $10,000 in your account

Short analysis: The falling kijun line, currently at 106.58, has capped USD/JPY for now. The downtrend from January remains intact. We opened short at 106.00. The new target is 104.00.

USD/CAD

Trading strategy: Short

Open: 1.2900

Target: 1.2600

Stop-loss: 1.3050

Recommended size: 1.72 mini lots per $10,000 in your account

Short analysis: The USD/CAD broke below short-term moving averages, which is an important bearish signal. We expect a further downward move in the coming days. Short for 1.2600.

AUD/USD

Trading strategy: Long

Open: 0.7760

Target: 0.7950

Stop-loss: 0.7690

Recommended size: 2.50 mini lots per $10,000 in your account

Short analysis: The AUD/USD pierced the 7-day exponential moving average and the next resistance level is 0.7785. The momentum is turning bullish. Long for 0.7950.

EUR/GBP

Trading strategy: Await signal

Open: -

Target: -

Stop-loss: -

Recommended size: -

Short analysis: RSIs deepen their slide and a new trend low is set. Bear sentiment is increasing. The pair's long-term consolidation phase might be ending. We are waiting for clearer signals before opening a new position here.

Author

Wojciech Matysiak

MyFXspot.com

Wojciech Matysiak is a chief editor and chief economist of MyFXspot.com, currency market analyst and strategies provider.

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