Friday, March 23, 2018

Buy The Rumour, Sell The News

The US Federal Reserve announced an interest rate hike from 1.5% to 1.75% but rather than a sharp move north after the news we observed just a sharp whipsaw on the EUR/USD charts, a struggle between the bulls and the bears…and that was it. The bulls took the initiative and the rally was 137 pips and it happened within the multi-day range from which the pair still cannot come out. Or, as the experienced traders say, buy the rumour, sell the news.

Today is Friday, the end of the trading week is close and unless something changes by the time the markets close the W1 bars on the chart continue to signal that there will be a move north. 1.2600 is a target that is completely reachable for the EUR before the beginning of a deeper correction of the rally from 1.03400 (3rd January 2017) until now.