1.0 Introduction
USD Federal Open Market Committee (FOMC) Rate Decision was at June 17. This huge forex event is excellent for trading because it creates strong volatility and market direction. Trading the news is very difficult. Traders need to be nimble and prepared to close the position if price action went against them and on the other side they must calculate stop loss on right way and avoid to be "washed up" (lose position for few pips because volatility).
Trader need to be concentrated during post event speech because some important information can turn market down or up. Sometimes , FOMC rate move market 50-100 pips in one direction and then during the speech we get some new information which move market in opposite direction.
In this article I will try to describe whole process of trading.
2. Fundamental analysis before FOMC
May and June were one of the best months in fundamental view for dollar. Non-farm Payrolls were 280K with positive Retail Sales and several excellent reports. Employment stats are amazing and economy overview is in excellent shape. Personal consumption and industrial production are little bit below expected. Only industry in USA which is not in good sh…
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