Will there ever be another rate hike? With inflation rate picking up less than expected and nowhere close to its 2% target, traders sold off the U.S. Dollar after the latest FOMC meeting showing indication of post-poning the next rate hike.
Today’s post will show the major technical levels I’m looking at. Given the current pull back conditions in several trending markets, I see quite a few opportunities to get in on the trend.
Major sell-off has been going on with the USDCAD pair after hitting the 1.46 high. This is expected to continue as the Canadian inflation rate and GDP grows. The GDP especially marks a significant turn around officially exiting a technical recession.
With that said, I am expecting the sell-off to continue with the USDJPY pair. I marked several levels of potential entries I look to begin shorting into. Bank of Japan’s negative rates may be working giving a faster than recovery. Paired with traders existing their long positions, I expect this pair to remain a good short opportunity.
Relatively the same setup over the EURJPY, I expect this pair to continue its sell-off. The Yen sellers are beginning to cover and this is another trend with potential to continue shorting into. The 127.275~ supply level isn’t expected to hold up, but I left it in as it has made two tests so far and both tests have held strong.
This isn’t a chart pattern I would personally trade, but two things are happening here. The first is the ascending trend-line marking the uptrend since January 18 has been holding up. The other is the descending channel marking a period of consolidation since the beginning of February. Combine these facts together, there is a good upside breakout movement that I plan on scalping.