The fed is about to cut interest rates for the first time in over a decade.
Whats important here is not what the current interest rate is because the market has already priced that rate in.
When Powell Speaks Tomorrow he will indicate what the fed is likely to do in the future. Will they "CONTINUE TO CUT" interest rates or did allow the economy...
Let's talk about the advantages of shorting the USD/JPY right now.
Economic Analysis Advantages
1. USD/JPY has only rebounded because of the positive job numbers from NFP this bullish wave is likely to be short-lived.
2. Fed Powell is speaking about interest rates before the day comes for him to speak a lot of people will abandon the USD before the announcement...
Just for my private post. The next candle should be green due to USD rebounding from higher than expected NFP Numbers. We will also receive news in the early morning about the USD price index rebounding as well as other currencies falling due to the USD becoming stronger from NFP. That being said why "short".
The entire market is expecting .25 rate cut...
Currently the EURO:USD has started a down trend. We can support this fact by looking at the red squares on the chart we have lower lows and lower highs in the market so down trend is confirmed. Looking at possibly futures for price action our eurousd pair has an RSI over 60 percent based on that knowledge we can predict where this pair wants to head.
Usd is a buy has resistance is now acting as support and has been testing twice. Upward consolidation is the result of the rebound from the support lines. This is my fourth analysis currently 3/3 lets keep the streak going!