Some trades are obvious. Selling US dollar against Australian Dollar and New Zealand Dollar is one of them. And now since Fed is out of the way, we can cautiously dabble into EUR/USD long too. There was no surprise in Fed decision after FOMC yesterday and everybody in the town knew that. You can say that by reading the price action of USD pairs before the FOMC. Everything was up because of front running FOMC. And as soon as the news came out, fast money took some profit and thus the pullback in those pairs.
Now we are back to US dollar selling mantra and looking for good levels to get in or add to our existing positions in case of AUD/USD.
For EUR/USD, break of 1.1300 is needed before we put more risk into the trade. Until that happens, we are happy to trade EUR/USD with long bias. Initially we would like Euro to hold 1.1240 / 1.1220 on pullbacks.
Now we are back to US dollar selling mantra and looking for good levels to get in or add to our existing positions in case of AUD/USD.
For EUR/USD, break of 1.1300 is needed before we put more risk into the trade. Until that happens, we are happy to trade EUR/USD with long bias. Initially we would like Euro to hold 1.1240 / 1.1220 on pullbacks.
