If you have traded currencies very long you have come to the days that the FOMC Statement is released as well as the Fed Fund Rate. I will not go in to explaining what these are. You can go to Forex Factory for example, and click on the icon that explains them in brief. This is essentially a window into what the Fed is thinking and typically has a repressive affect on the early hours of the NYSE Open. This will save you time on these days. Take you kids for a walk or to the beach or go Christmas shopping if you are sitting in front of your computer today. The markets will not move a significant amount unless some other event occurs that is not scheduled. As this is highly unlikely it would also be safe to say that nothing new will come out of the statement, nor will there be a Fed Fund Rate change.
One comment heard this morning on Squawk on the Street was Jim Cramer saying that in his thinking Merkel of Germany will defend the Euro at 1.31. At the moment of this writing the market is 1.3187. Three times in that last 24 hours it has reached 1.3160. This is proof positive that we as retail traders need to watch what the people with power and money are doing. Yes, Many people can and will make argument for technical analysis here for the market to go long but it will not be because of a technical, it will be because the Euro will need defending . . . at least until it becomes no longer feasible and another reason for understanding The Dow Trade and momentum in the market. A complete explanation of momentum can be learned from The RSI PRO Forex Trading System.
Today’s trade is from yesterday . . . as I have not yet exited. If you are thinking you are probably wondering why I am still holding this trade based on the above explanation. You can read about that in the Premium Membership Area.
Today’s trade up another 25 pips from yesterday.
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