Today’s free signal is
USDCHF BUY LIMIT 0.9612 SL 0.9560 TP 0.9820
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Dollar Bulls to Remain in Control as Fed to Double Down on Hawkish Stance.
FX SIGNAL
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.1% to 109.44, though it remains close to its highest level since 1985.
“[W]e see the dollar staying at these strong if not stronger levels for the rest of the year,” ING said, flagging the upside risk of the market pricing in more aggressive Fed monetary policy tightening. Today’s free signal 20 09 2022
Why trade forex
The decision will be accompanied by a fresh set of projections on inflation, economic growth and the future path of interest rates that will collectively indicate a more hawkish path to restrictive territory.
Institutional Move
Sometimes the big traders make their moves to grab the liquidity. The moves are introduced as institutional moves. This move happens on any equal low area where most of the traders put their stop loss.
Understanding Market Structure
Liquidity
Banks/hedge funds are the most liquidity provider in the forex market, and they always use this term to move the price. Liquidity is defined as where most traders/retail traders give stop loss. It can be above the zone or below the zone. Their Stop loss is liquidity for the banks/hedge funds. Banks/hedge funds move the price to grab this liquidity.
Trading – Expectations VS Reality
Acknowledge that the recent inflation data aren’t showing enough of a slowdown in price pressures, ING said, the Fed’s subsequent meetings in November and December could therefore see “more aggressive action from the Fed” than it is currently forecasting. Today’s free signal 20 09 2022
About 60% of traders now expect the Fed to hike another 75 basis points in June, compared with just 16% the prior week, according to Investing.com’s Fed Rate Monitor Tool.
Market Structure
When banks/hedge funds/institutions move the price, they always create a structure. In a bullish trend, they will continuously create a higher high and higher low. And in a bearish trend, they will continuously create lower highs and lower lows. These characteristics are called market structure.
Forex Liquidity And Volatility
For the December meeting, consensus isn’t yet clear, but another 25 basis point hike appears to be offing, taking the Fed’s funds rate to a range of 4.25% to 4.50%.
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