USD is extremely overbought but I still like my positions. Some of my users have asked me this question a few times when we will get a pullback on USD, actually, I have no idea. However, I would tell you it is never late to buy USD this year if you are doing well in money management.
This is what I think about yesterday's Fed's meeting. I think you will feel a little disappointed if you are a USD bull, but trust me, just a little. That the forex market overreacted to Fed's statement was a very clear sign that everyone wants to buy USD before the Fed rises rate.
The sterling was still under pressure ahead of the Scotland Referendum, based on price action on GBP these days, I still dug out a few trade ideas for GBP even if all of those ideas involve many risks. Basically, it is hard to build any positions before a big event so that you have to utilize many strategies to hedge your risks such as put call on option, buy stop on forex, etc.
Heading news will be a theme this week, foremost among those is Scotland Referendum, then we will also expect Yellen gives us more details about US economy, everything we want to know is how to trade in high uncertain market. Now let me show you what I think.
I was still unhappy with my results recently because I missed a bunch of trade calls, sometimes you have to admit that you cannot catch every trade you like, but I really want to be aggressive when I know what is going on in the forex market. Today, I will share a trade call from a super fund manager.
SNB will sell CHF anytime soon, ECB could sell more EUR as fast as this week, RBA does not like Aussie, Kiwi extended its loss as dairy price falls 6% on latest auction, a poll that support for Scottish independence jumps high which lead to GBP dropped sharply, everyone in the market buy greenback now before US hikes rate.