In today’s post, I have shown you the explanation behind the NZDCHF trade I took which ended up making me 153 pips. I was holding it for more than 2 days!
I was still holding it when it did a pullback of 80 pips back to my entry yesterday until today when it did its final move based on SNBs surprise interest rate move. Stick to the plan.
“If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.” – Bill Lipschutz.
The FED got together yesterday and raised the interest rate by 75 bps as most people were expecting which was 25 bps higher than predicted.
This does have growing recession fears as it’s tightening the market rapidly with also their goal to reduce their balance sheets quickly.
Inflation is their main focus as mentioned in the minutes.
Today we had the BOE rate statement where we saw the bank raise votes by 25 bps.
There wasn’t much said in the report. A new thing mentioned was the government Cost of Living Support package suggests that, all else equal, it could boost GDP by around 0.3% and raise CPI inflation by 0.1 percentage points in the first year.
The rest of the report just spoke about inflation, employment and GDP revised figures.
Support and Resistance
I also want to bring back an old post in case any of the new members missed it. Support and resistance are the foundation of forex.
At the start of this year, I made a post explaining how I plotted my levels using the monthly timeframe.
A lot of beginner traders don’t know where to plot their lines and end up having 10 or more lines on a chart.
This is very messy to see on the charts and will definitely confuse you more than not. Using the method I have shown you will be able to focus on a particular area for every pair.
I am going to check these levels again this weekend; as we are halfway through the year and the price has moved to new levels.
*This post is only available to our members at the moment.
Stick to the plan.
If you need any help with your trading journey myself, Thinus and Marc are here to help you. We are still providing the private mentoring classes for anyone interested in improving their trading career. Just drop us a message. No pressure.
You can find the video below for my full analysis: