ForexSpirit

Yesterday’s FOMC announcement gave a shot in the arm to the euro, taking it decisively over the 1.33 level, even though the wording of the statement was still pretty hawkish. The ‘ongoing’ adjustment in the housing market seems to have been the clincher, especially after all the sub-prime mortgage talk over the past few weeks.

I had a toe in the water, with a Q4 trade just under the top of the grid at 1.33, which I entered earlier this week. I closed out the trade this morning after the fallback from 1.34 during the London session. The market will probably digest the still hawkish nature of the Fed and drift back down to around 1.33, where I’ll look to get back in for further moves north.

As the US housing market drama unfolds and the ECB talks up continued rate hikes in the near future, there is still lots more strengthening of the euro on the cards.

I have taken just two trades this month, both of which have ended up nicely in the black.

With the top of the grid broken, it is time to re-adjust it. I am comfortable moving the grid up 200 pips (half a grid adjustment), so that the new grid has a base at 1.31 and a new top at around 1.35.

This is how the new grid placement looks on a daily EUR-USD chart: