What to trade after the FOMC? Gold, NZD/JPY and USD/CNH
FOMC was perceived dovish by traders worldwide, that is why we do have a come back to the main trends, so weaker dollar, stronger EM, higher stocks and commodities.
Gold climbed back above the 1258 USD/oz resistance. Currently that will be the closest support. That breakout creates a nice buying opportunity with the desired – high risk to reward ratio. Potential target for this movement lays slightly below the 1300 USD/oz
NZDJPY is a good one for the long-term position carry traders. Once the weekly candle will close above the neck line, we will have a great buying opportunity here. Huge inverse head and shoulder pattern has chances to lift the price hundreds of pips higher, additionally giving you positive swaps.
USDCNH – this one is slightly against the weak dollar trend. Here, the buy signal emerges. The price is bouncing of the long-term support and creates a hammer on a daily chart. In addition to that we are in a wedge formation, which promotes an upswing. All that together increases the chances for a bullish movement.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis