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Today, the British pound, the euro, and the Canadian dollar were traded using the Mean Reversion strategy. I did not execute any trades using the Momentum strategy.
Data on lending in the Eurozone and the M3 money supply had no impact on the euro's exchange rate. The pound also remained ignored by traders amid a lack of any significant statistics. The market appears to be in a state of relative expectation (wait-and-see mode), focusing exclusively on upcoming statements from Federal Reserve officials. The second half of the day is expected to be more active, as attention will be centered on the Federal Open Market Committee's decision regarding the key interest rate.
Particular importance is attached to the upcoming press conference, during which Fed Chair Jerome Powell will speak for the last time in his current role. His comments, analyzed under a microscope, will not only clarify the decision taken but may also hint at the regulator's future steps. His final remarks in such a responsible position will carry weight, shaping medium-term expectations regarding the trajectory of interest rates and other monetary policy tools. Any deviation from consensus expectations could trigger sharp market movements, creating both opportunities for profitable speculation and risks for unwary investors.
Data on U.S. durable goods orders and building permits are also expected. However, all attention will clearly be on the Fed's decision.
In the case of strong data, I will rely on the Momentum strategy. If the market does not react to the data, I will continue using the Mean Reversion strategy.
Momentum Strategy (breakout) for the second half of the day
For EUR/USD:
For GBP/USD:
For USD/JPY:
Mean Reversion Strategy (pullback) for the second half of the day
For EUR/USD:
For GBP/USD:
For AUD/USD:
For USD/CAD: