This was a US30 sell taken during the London session a day before the US Interest Rates news release.
Technical Analysis (explained in detail in the video):
1. Price was making lower highs from higher timeframes and continued to show bearish momentum.
2. During the Asian session yesterday, the price consolidated at a psychological level and finally made a liquidity wick as it broke previous 4-hour and hourly lows.
Fundamental and Market Sentiment Analysis:
1. Last week's CPI data showed inflation increasing, whereas the markets expected a slowdown or a decline in the price pressures.
2. The market started to price in potential higher interest rates this week.
3. Discussions around a full percentage hike started coming onto the table, and can that essentially mean a recession next year?
This week's trades are purely off of the market sentiment leading to tomorrow's interest rate hike.
Technical Analysis (explained in detail in the video):
1. Price was making lower highs from higher timeframes and continued to show bearish momentum.
2. During the Asian session yesterday, the price consolidated at a psychological level and finally made a liquidity wick as it broke previous 4-hour and hourly lows.
Fundamental and Market Sentiment Analysis:
1. Last week's CPI data showed inflation increasing, whereas the markets expected a slowdown or a decline in the price pressures.
2. The market started to price in potential higher interest rates this week.
3. Discussions around a full percentage hike started coming onto the table, and can that essentially mean a recession next year?
This week's trades are purely off of the market sentiment leading to tomorrow's interest rate hike.