The TC trading system has delivered hundreds of pips prior to today’s much awaited FOMC event. There is AUD CPI, an RBA Gov Lowe speech, GBP GDP as well as US Crude Inventory data to monitor today as well though so keep an eye on the revised 4hr chart trend lines for any new breakouts.
There has not been a lot of movement across many FX pairs but a couple have given decent TC trades. The US$ is holding up above the weekly 200 EMA to start the week and there may not be much movement there until FOMC; if so, that could keep many FX pairs choppy until the news event. There is only US Consumer Confidence as high impact data to monitor in the next session.
Last week: In last week’s update I had discussed the mean-reversion potential for a number of FX pairs and, whilst this looks to be evolving, I’m wondering if FOMC might disrupt, or even halt, the process? There were numerous trend line breakout trades and TC signals with all of this movement though and there are more patterns with trend lines to monitor in this FOMC week.
The US$ had a bearish week following the previously weekly break down through 95.50 support. There is FOMC in the coming week and I’ll be watching to see if this can reverse recent bearish sentiment at all.
One of the best features with the TC trading system is that there is no bias and traders simply have to watch out for momentum-based trend line breakouts. As sure as sun follows day chart breakouts tend to follow congestion and last nights ECB news helped to trigger more breakouts to add to this week’s tally. The TC Trial will be winding up in the coming weeks and has delivered very pleasing results from those traders who were able to commit fully to the Trial. There will be more on this at a later date.