Today is Fed day and another laser beam focus to a probable 50 pip move. How important is this day? This day is meaningless, and time in the trade rooms will be wasted. At the same time, the opportunity exists to spend quality time on other projects and events.
This week’s trade recommendations for 20 currency pairs were long and short anywhere at the Sunday night open. I fail to recall such an opportunity as long and short anywhere on 20 currency pairs. But this was the opportunity presented, and the moment didn’t fail us as usual.
As written for the past two weeks, anchor pairs will fail us and focus on EUR cross pairs and GBP cross pairs but GBP only for this week to relieve oversold conditions. EUR/USD traded 108 pips this week. EUR/AUD was the winner with a 371 pips range followed by EUR/NZD 306 and EUR/CAD 249.
GBP/USD traded 50 pips. Correct to no future here and under perfomance. GBP/AUD traded 302 pips, GBP/NZD 226, GBP/CAD 167 and GBP/CHF 134. NZD/USD at 84 pips outperformed dead GBP/USD at 50. GBP/USD always trades farther and wider than NZD/USD. A warning.
USD/CAD traded 139 pips and AUD/USD 134. Both are great pairs and should always remain the focus of weekly trades. NZD/USD has problems, but NZD lived with the same old range problems since November and sat on the bottom to 19 currency pair trade rankings. The RBNZ raise didn’t assist NZD one iota.
See USD/CAD as reported 1.2841 and 1.2863. Cad traded to 1.2870. GBP/JPY traded 177 pips to lead JPY cross pairs higher. We wrote to caution to GBP/JPY due to the position to USD/JPY and GBP/USD, yet it was actively traded. No pair ever goes not to trade status despite its position.
EUR/JPY at 129.00 multi-year highs. Short only is the way. What is 130.00’s? I don’t know. Only Jesus Christ knows as 130.00’s doesn’t exist. AUD as written short AUD/USD and cross pairs. AUD/JPY +88 pips, CAD/JPY up 93 and down 30.
USD/JPY remains a problem. Long term target remains 113.00, and 112.00’s on a short-only strategy. Now at 118. Every pip higher will result in + profit pips on the way down. What is 118 USD/JPY? Another question for Jesus Christ as it doesn’t exist.
On DXY, as we wrote Sunday, short from 99.15 highs achieved 98.61 lows, targeting lows as written Sunday, 98.56. Currency markets could remain cross-pair-driven for many weeks to come and a fantastic opportunity to profit.
Ask this question on Fed day. With 1000 and 1500 pips banked without effort, Is this day spent earning more pips or sit the week out and wait for the next’s week’s easiest trades. Do we care what the Fed does and says? No, we don’t, especially to Powell, as politics is far more vital to him than economics.