Despite a more hawkish tone from the FOMC meeting yesterday, the USD is mired in a downtrend. If the current level gives way, it has plenty of room to drop. All of this may fly in the face of fundamentals…but remains the market’s sentiment of late.
Early in the U.K. session the NZDUSD moved down to its Asian session low where it found support as buyers entered. Risking 13 pips for a potential 67 pips to our daily target, we entered long, but took the risk out of the trade in advance of the U.S. session opening.
Despite a positive ISM Manufacturing PMI release for the U.S. our trade continued to move up toward our target and we exited at the London close.
I will be back next week as I prefer to pass on NFP Fridays for trading.
Good luck with your trading and enjoy your weekend!
