FX cross pairs have offered better trading opportunities ahead of today’s FOMC. The best trade of the day was a trend line breakout on the EUR/AUD that also came with a new TC signal for 100 pips and 2.5 R. Data today also includes US CPI, GBP Employment and an RBA Gov Lowe speech so watch relevant pairs for any impact.
The NZD$ gave a move on Monday that triggered a few decent TC signals with the best one coming from the GBP/NZD with a low-risk set up and an 18 R trade result. Watch tonight with GBP CPI and USD PPI.
Last week: Last week was a rather spectacular week for TC as there was an abundance of, what I refer to as, Optimal-style TC signals. These are TC signals that trigger alongside a new trend line breakout and they generally offer a low-risk trade set-up having a high probability of successful follow-through with great Reward to Risk potential. I have completed two trading trials with TC this year and I’m currently contemplating how to best take this forward into the New Year. The good news though is that there are lots of new 4hr chart technical patterns to monitor for any new breakout in a week filled with lots of high impact data.
The US$ index continues to hold above support following a decent, albeit mixed, NFP report; the ‘Jobs’ component was strong but the ‘Wages’ was a miss. I have revised the Flag trend lines for both FX indices given the amount of sideways price action. There are rate updates to impact both indices in the coming week so watch for any new momentum-based breakout on these.
What a session! There have been many new trend line breakouts since yesterday’s update and most of these also came with new TC signals. This is TC Heaven as the preferred trade set up for TC is to wait for such an alignment of events.