Tuesday, September 18, 2007
Forex Day Trading - FOMC Rate decision push to market
Forex Day Trading - FOMC Rate decision push to market
Today the FOMC meeting was scheduled and the fx market was speculating about the rate interest decision from the meeting as that will have direct impact on $$ based currency pairs.
If the interest rates go up AS PER EXPECTATION then its USD bullish and which means USD will get stronger and will cause EUR/USD, GBP/USD and other pairs to tumble.
But today the forex news on FOMC was not as per expectation and this has caused the currency pairs to move in anti-$$ direction.
The market jump was significant and my trade was open. But my trade was in favour of USD, so guess what, my trade closed by hitting -35 pips stop loss. Well thats the drawback of trading during fundamental announcement time. The market moves due to fundamental announcement, but it honors technical also. E.g. the market will move heavily and then hit the 200 EMA to retrace back.
Thats all in this message..Visit again to learn more on forex day trading.
Today the FOMC meeting was scheduled and the fx market was speculating about the rate interest decision from the meeting as that will have direct impact on $$ based currency pairs.
If the interest rates go up AS PER EXPECTATION then its USD bullish and which means USD will get stronger and will cause EUR/USD, GBP/USD and other pairs to tumble.
But today the forex news on FOMC was not as per expectation and this has caused the currency pairs to move in anti-$$ direction.
The market jump was significant and my trade was open. But my trade was in favour of USD, so guess what, my trade closed by hitting -35 pips stop loss. Well thats the drawback of trading during fundamental announcement time. The market moves due to fundamental announcement, but it honors technical also. E.g. the market will move heavily and then hit the 200 EMA to retrace back.
Thats all in this message..Visit again to learn more on forex day trading.
Labels: FOMC, forex day trading, forex ema, forex news, fundamental announcement, fx market, stop loss
