Print more money - that's the spirit!!

Hello traders, and happy Australia Day. Big news coming out of Wednesday is the Federal Reserves dovish stance on monetary policy. FOMC minutes highlighted significant headwinds for the US economy and will keep "easy money" on tap for a while. Translation? US Dollar hammering. I had gone with a short on the GBP/USD which was initially looking good until the report came out. Guess it was a surprise given the expectation leading up to the announcement was a bit on the side of "policy normalisation."

This suggests accelerated losses for the dollar in the near term unless the European situation deteriorates. At the moment, even with all the talk of technical default, the risk based assets seem to very well supported. The market is in "happy land" at the moment where it's nothing but sunflowers, butterflies, and blue skies (can you tell how pissed I am?!).

This has capped off a horrible January for me. Hopefully I can end on a good note. A couple of setups going into the end of the month.

Main one is a short setup on the AUD/NZD. Fundamentally, the low CPI figure, weaker economic indicators, and expectations of rate cut cycle has diminished the attractiveness of the AUD. New Zealand seems to be coming out on top in this respect given their central bank is still taking a wait and see approach.

Technicals illustrate the continued rejection of the 1.300 price area with price action constrained within a downward sub channel and within a larger descending channel. I shall be watching for a decent short setup on this one.

Second pair I am looking to trade is the GBP/USD. At the moment, it is simply surviving off risk sentiment and leeching off Euro strength. Economic indicators and BOE minutes have been horrible to say the least so can't see why else this pair is at where it's at. Certainly it has been fairing worse against all other cross currency pairs.

Any who, this pair is in a strong bull trend at the moment. Last night finished with a pin bar off previous 38.2% Fibonacci as well as prior trend channel resistance. This suggests more gains to come. Not too sure whether I should be aggressive about this one today given the remarkable run it has had. Will let you know if I do take the plunge on this one.

That's it from me today. Good luck trading out there guys and we'll proably chat again in the weekend wrap up.