Good morning, and welcome back to my journal for today's post. The dollar index has been losing strength since the first day of the week. I feel you've all done well trading with these market advantages. Forex trading is not straightforward, but it is simple if we understand how to evaluate the market for strength or weakness in any currency. We also saw a lot of market volatility last night as a result of the FOMC statement. It is always the most unpredictable news for the market, which is why I always avoid trading around this time.
USD index The USD index will remain bearish until it mitigates the last order block zone, as I have mentioned in my journal for the last few days. You can see from the H4 candlestick pattern that there has been a strong downward trend over the past few weeks. It has already mitigated the order block of 101.60 this week, and is now in correction mode again, but still below the bearish trendline. As a result, the bearish trend will continue in the next few days. I anticipate the USD index will break over the 101.60 support level today or tomorrow. If the price can successfully break below it, our final objective for this month will be the lower swing zone of 100.10.
Economical Events Already we have seen an impact on the market because of last night's FOMC news. It is always high volatility news which causes very dangerous movement on the market. People all over the internet were looking for a straight strength in the USD index before the report of the FOMC statements was published, but it did not happen. The news is still making the USD weaken against other major currencies in the market. Today at the London session we didn't have any news to focus on, but at the USA session, we had three important reports to focus on. All the reports could again have some volatile impact. In the forecast of the news, we can see it once again showing a negative mark, which means the USD could again remain weak.
Active Trade I had a couple of open trades in my demo account yesterday that were floating by a large profit margin. All buy trades in USD appear to be profitable at the moment, owing to the USD index's weakness. I believe the market is once again showing positive momentum today. So that's why I'm still holding the GBP/USD and EUR/USD buy positions. Last night, I made a mistake by buying the gold price. It didn't go according to plan. If things don't look good in the London session today, I'll manually close the gold buy trade to preserve my demo balance.
Closed Trade Before the FOMC announcement last night, I set my take profit objective for the GBP/USD trade at 1.2550, and the trade successfully reached my desired target zone. That was a very solid trade for me yesterday. To make a lot of money in the market, we sometimes have to take risks. Despite the fact that the GBP/USD pair is still going above the bullish continuation, it is incredibly satisfying to conclude the trade with a profit mark.
