Pre Fed Daily Analysis

The markets have been fairly flat with the exception of a few pairs ahead of the Fed announcement.

Traders will be eagerly waiting for the outcome and how the markets react.

Although it is very hard to predict what will happen post news I am looking at a few potential opportunities that may present themselves.

A lot could change after the announcement but I do expect the dollar bulls to keep control even without the threat of a change in rates.

I will be keeping a close eye on the dollar index to see whether the trend will remain or if we see signs of a possible reversal.




Depending on your time horizon your assessment was wrong and I think many were stopped out. I have been long and the 500 pips rally was not bad if you caught it.

I agree with TheLastBear…

However, USD pairs have not performed so well on Thursday and Friday (today), so the rally against

the USD has already run out of steam, and even coiled back, exposing the fact that there is a lot of

money betting on USD weakness out there, ready to take advantage of pullbacks; however, I also

think, based on the short-lived nature of this USD selling, that it has done nothing to reverse trends

like the bearish Cable and EUR/USD ones, therefore it was not a reversal but a relief rally (a natural

readjustment following the Dollar’s eight-month consecutive bullish run)…

The hysteria in the commentary is probably hyped by business news to get people to buy into positions

that money makers want them to buy… Okay, not conspiracy theory, just a guess as to how market

makers exploit crowd psychology through ‘hot news’ moments…

So forget the FOMC rallies from Wednesday and look at the bigger picture before and after the event:

has it altered trends on the Daily or Weekly charts, for the Majors?

If the answer is no, and you trade trends, then you would probably be sticking to whatever bias you

had pre-FOMC…

Happy trading!