US Open – 20.03.14

Yellen came out with unexpected hawkish news that the Fed is dropping 6.5% threshold and that the interest rate will be increased in 2015. Most of the Fed have said they believe it will be 1% or over. On that news the dollar did about 80 points across the board and then in the Q&A Yellen said that the interest could increase in the next six month and it did about another 40 points.

Over the night in Asian session it has been trading in a tight range and on the European Open people started buying the dollar again.

EURUSD broke out of the range and hasn’t looked back… it did another 40 points and broker through the 38.2% retracement of the move from 1.3477 to 1.3966 and is now waiting for the US Open and the data that comes with it.

Cable has broke out of its range but couldn’t break through the 1.65 level. So it just increased its range a little.

USDJPY is trading in a right intra-day range and just keeps increasing it slowly slowly. The next main resistance level is at 102.80/103.

AUDUSD has traded bellow 0.90 but has bounced back up now. Waiting for the data that comes with the US Open also.

USDCAD has smashed through and kept going. Went into an overnight range and has broken out of it also now. It is trading at the highest levels since mid-2009.

As you might have guessed me being a net buyer of the dollar that it has been a good day for me yesterday. I am now waiting to add to my positions on USDJPY on the break of 103 or taking a profit if breaks down through 102. I have added a short position on EURUSD on the break of 1.38 and will add more shorts on AUDUSD on a clear break of 0.90. I am not sure how I feel about Cable and selling it on the break of 1.65 as I was always buying it on dips and it seems like its still in its 200 point range. Will probably stay away from that for now as well as CADUSD as its way to high for my liking but I don’t like selling the dollar right now.

That is it for today. Good luck trading.

For more info you can contact me at denis.taranov@savitrading.com