The FED left the rates near zero for another month.
Following financial market turmoil in late August, September started off with a heavy feeling of fear. The forex market began the month in a volatile manner, which continued during the whole of September. The decision of the FED to leave the rates unchanged calmed the fears somewhat, but the volatility continued, especially in the US Dollar pairs. We had a good month though, making 388 pips, since we have gotten used to this sort of market. We´ll talk about highlights of the forex market in September in this monthly review, as well as a short blurb on the 3rd quarter.
Forex Signals
The volatility increased this month, compared to July and most of August, so the number of signals were larger than before. We issued 91 signals this month, with 64 resulting in profit and the other 27 hitting stop loss. That gives us a 29:71 win/loss ratio, which is below our average of the last few months, but altogether not bad if you take into account the increased volatility. Our most profitable pair this month was USD/JPY. We only issued 13 signals on this pair this month, as opposed to the 26 signals in EUR/USD, but made 334 pips from them. The second most successful pair was GBP/USD, where we issued 14 signals and pocketed 85 pips. USD/CAD has been in a strong uptrend, and we took advantage of this, opening six buy signals that brought us 104 pips. The Euro pairs, EUR/USD and EUR/GBP, were the least profitable ones due to the volatility of the Euro.
USD/JPY formed a support at 119.00-20 which gave us opportunities to open several buy signals.
Although the market suffered a mini-crash in the first day of September following the late August crash, we managed to score four winning signals after a losing signal in the morning and closed the day with 60 pips. That first week went pretty well and we made 171 pips in total. The market grew nervous in the following two weeks, awaiting the FED interest rate decision which was scheduled on Thursday the third week. That made trading very difficult and we lost 125 pips on the second week, while closing the third week with a small 12 pip profit. We came back strong on the fourth week, when the market calmed after the FED meeting and made 207 pips that week. The good performance continued the last three days of September when we made 88 pips. As we mentioned above, the best pair for us this month was USD/JPY. We issued 9 short-term signals and 4 long-term buy signals. We based the long-term signals on the strong support base that this pair has put in place at 119.00-20, as you can see in the chart above. That proved to be successful and we made 334 pips from this pair.
The market this month
The forex market left behind its summer holiday mode and the usual volatile price action started from the first day of September. I guess traders got back from their holidays and didn´t want to miss a ...
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