It’s trend-catching at work, folks! Thanks to a strong move in GPB/USD, the HLHB System was able to gain back its losses from EUR/USD and ended the forex week on a positive note.
Read all about my HLHB Trend Catcher System if this is your first time hearing about it!
EUR/USD traded on a tight range for most of the week and only saw volatility spike during the FOMC minutes. No speeches were made, but the document contained strong hints that the Fed would seriously consider a rate hike in its December meeting. The pair then dropped by around 100 pips though it steadily recovered its losses before the trading week ended.
Signal-wise the system saw a lot of fakeouts. Signal #9 turned out to be a real winner though, and helped mitigate the losses to a mere 18 pips by the end of the week. Not bad!
Cable’s range wasn’t as tight as in EUR/USD though its volatility was also limited by anticipation before the FOMC release. The pair made new intraweek lows at the 1.5250 area before it popped up on profit-taking and a couple of weak reports from the U.S. The strong move higher was caught early by signal #9 and enabled the system to gain a nice 137 pips from the move. By the end of the week the system was up by a net of 120 pips from GBP/USD. Woot! Woot!
NFP week next week, folks! Think we’ll see strong intraweek trends?