The euro reversed its trend yet again abruptly and regained 1.2300 after the less hawkish forecast from the Fed.
The EUR/USD is up more than 100 pips against the U.S. dollar and trades close to $1.2350. The Fed raised rates as expected but did not raise the interest rate forecast for 2018. The U.S. dollar plunged across the board after the Fed meeting as the Fed suggested that there would be only two more rate hikes in 2018 and not three. Furthermore, during the press conference, Powell said that the data did not indicate the inflation was about to accelerate, that the lack of wage rises surprised him, and that some businesses were worried about trade.
Yesterday, the disappointing German economic numbers sent the euro below 1.23 to as low as 1.2239. The nervousness about the hawkish Fed that may raise the interest rates 4 times in 2018 also capped the euro below 1.23. The Fed did not deliver that message today, and the U.S. dollar was, therefore, sold off.
There has been 1 trade from my MT4 EA since the last update. That trade is still open at the moment.
The strategy can be found here.
The previous week’s result can be found here.