ForexSpirit

So Monday and early Tuesday movement saw some rewards for my continued patience. Euro strength returned for a short while and I reached the profit objective on my two most recent trade entries.

The dollar soon took over again and we found ourselves back at the 1.266 level when the US data (PPI and housing stats) were released this morning. Both PPI and the housing numbers were both decidedly non-friendly for the US, and the Euro took the upper hand again. I entered a two lot position when the just after the data was released, setting a profit target of yesterday’s high around 1.272. I missed this profit objective by a few pips, and price was soon back to where it had been at the release of the data, hovering around 1.268. It is hard to see how this dollar strength can survive past the Fed interest rate announcement that will take place tomorrow. There is a very high chance that the rate will be left unchanged. That’s not to say that people won’t see a reason to keep buying dollars though. The markets reaction to the rate announcement will determine how I deal with my outstanding positions from Q2 and Q3.