Buy now hold until 123.30. I will limit @ 123.00
Possible breakout to 125 after that.
With the Fed rate hike, FOMC and other related news coming up it will be interesting to see how this will all pan out, but I see it going two directions:
1. Fed rate hike and China is safe (Shanghai Index grows and doesn't complete the H&S).
We will see UJ go back up into the bull trend channel and may see higher highs up to 128.
2. China devalues currency again to save their stock market situation, the world panics and the BOJ becomes a dumping ground and we see UJ go down to 115.34 or lower. If China devalues currency again then possible dip down to 115.30
I am leaning towards China panic again. China's recent strategy is not sustainable and they do not have any contingency plans to help them recover their inflated bubble stock economy. So we will see Fed rate hike happen, then China will devalue their currency again mid next year.
Possible breakout to 125 after that.
With the Fed rate hike, FOMC and other related news coming up it will be interesting to see how this will all pan out, but I see it going two directions:
1. Fed rate hike and China is safe (Shanghai Index grows and doesn't complete the H&S).
We will see UJ go back up into the bull trend channel and may see higher highs up to 128.
2. China devalues currency again to save their stock market situation, the world panics and the BOJ becomes a dumping ground and we see UJ go down to 115.34 or lower. If China devalues currency again then possible dip down to 115.30
I am leaning towards China panic again. China's recent strategy is not sustainable and they do not have any contingency plans to help them recover their inflated bubble stock economy. So we will see Fed rate hike happen, then China will devalue their currency again mid next year.
Comment:
people were priced in at fed rate hike. I was expecting a bigger 100 pip movement, but didn't happen. Here we have a potential for Asia to retrace to 121.60~121.80 before moving up more.
Trade closed manually:
closed at 122.75ish
+206 pips
+206 pips
With the Fed rate hike tomorrow it has a potential to jump to 124.30 the bottom of the previous bull trend line, but.... Who knows?