Post-FOMC trades for the week ahead

In my post last week, I focused primarily on the AUDUSD, USDJPY, and NZDUSD pairs. I really didn’t look at the markets much at all given this meeting.

Recapping my forecasts, only USDJPY did not turn out so well as the meeting minutes indicated a split decision on the rate hike decision.

Before moving on, take a look at last week’s post. First off with the USDJPY pair, it was an easy entry and exit with a slight loss.

screenshot-at-sep-24-23-28-45
USDJPY 4-Hour

In this wedge consolidation pattern, it was a very exit at an loss especially given this wild swing. I am currently planning on staying out of this pair until it trading pattern becomes more defined.

screenshot-at-sep-24-23-45-31
NZDUSD 1-Day

Last week, I mentioned that the NZDUSD pair was a short trade that I’d to take especially given the break-out above the 0.73~ price level before quickly retracing below it. The reason, I suggested, showed stops being hit and ran in order to short at a favorable price. I do not believe this short opportunity is over. In fact, I’d say the short opportunity has only begun.

Similarly, AUDUSD rallied and I believe will continue to rally after a short retrace. Recap of my charting from last week:

screenshot-at-sep-17-22-30-06
AUDUSD 4-Hour

With the help of the FOMC meeting, the Aussie soared a total of 220~ pips and is still expected to go strong for the week ahead. I have established a few more intra-day zones that I believe deserve careful monitoring for another few optimized entries long.

 

screenshot-at-sep-25-00-05-26
AUDUSD 4-Hour

After removing a few levels that I believe will not hold up, I established two more demand zones over on the 4-hour time frame. The price level at the 0.758~ is what I deemed to be a weaker area given a much briefer imbalance between bid and ask order fills. The 0.754~ zone also needs to be approached with caution as it simply may be an arbitrary bidding point given the FOMC release and I would exercise extra caution trading in that zone as well.

screenshot-at-sep-25-00-22-36
EURUSD 1-Day

Even through the FOMC meeting minutes, the set of 1.11~ price zone held up quite nicely and I remain bullish for the week ahead. Currently, I have not spotted a worthwhile entry zone on a lower time frame (referring to the hourly). I decided not to plot and upload a closer detail of the hourly time frame as it shows a rather weak 1.118~ support zone. I’d like to wait and see this in real-time to form a better directional bias.

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