In line with expectations, the Federal Reserve raised the target range for the fed funds rate by 25 bp to 1.25% – 1.50%. The post-meeting statement highlighted a strengthened economic outlook and the Committee’s increased confidence to hit the inflation target before the end of this year.

Along the same lines, the update Summary of Economic Projections showed stronger growth forecast for 2018 and 2019 (reflecting the impact of the fiscal stimulus), a lower path for the jobless rate, and the anticipation that core inflation will exceed 2% next year.

This is how we trade today:


Trading strategy: Long

Open: 1.2330

Target: 1.2550

Stop-loss: 1.2245

Recommended size: 2.11 mini lots per $10,000 in your account

Short analysis: The pair climbs back above the daily cloud top as well as the 10, 21 & 55-Day SMAs. RSIs are biased up again and give us bullish momentum. We opened EUR/USD long at 1.2340 for 1.2550.



Trading strategy: Long

Open: 1.4085

Target: 1.4300

Stop-loss: 1.3985

Recommended size: 2.00 mini lots per $10,000 in your account

Short analysis: The GBP/USD bulls have broken the 30-day upper bollinger-band, (1.4088), which encouraged us to open a long position. Fourteen-day momentum remains positive, the target is 1.4300.



Trading strategy: Short

Open: 106.00

Target: 1004.00

Stop-loss: 107.00

Recommended size: 2.12 mini lots per $10,000 in your account

Short analysis: The falling kijun line, currently at 106.58, has capped USD/JPY for now. The downtrend from January remains intact. We opened short at 106.00. The new target is 104.00.



Trading strategy: Short

Open: 1.2900

Target: 1.2600

Stop-loss: 1.3050

Recommended size: 1.72 mini lots per $10,000 in your account

Short analysis: The USD/CAD broke below short-term moving averages, which is an important bearish signal. We expect a further downward move in the coming days. Short for 1.2600.

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