With no less than the Donald himself predicting good GDP numbers ahead of its release, I’ve decided to take advantage of a possible bullish run for the dollar!
Yesterday I shared on Twitter that I bought USD/JPY. And why not? The pair was trading just below the 111.00 psychological handle, which was also near the bottom weekly ATR, rising channel and the 200 SMA support on the 4-hour chart. Talk about the stars lining up!
I also have high hopes for the upcoming U.S. GDP release. For one thing, Forex Gump’s trading guide mentioned that strong consumer spending just might boost the economy’s overall growth.
And if that’s not enough to get you excited, then look no farther than the POTUS himself. In his speeches yesterday he hinted of a strong GDP reading, saying that “You’re going to see on Friday what happens with GDP. A lot of predictions…some with a 5 in front of it.”
He tempered his statements by sharing that he doesn’t think having a 5+% growth is going to happen, but that “if it has a 4 in front of it, we’re happy. If it has like a 3, but it’s a 3.8, 3.9, 3.7, we’re OK.”
If his (correct) hints about a positive U.S. NFP report were any indication, then we might see an upside not-so-surprise for Uncle Sam’s GDP!
For now, I’m nursing a long trade at 110.70 with a full WATR (155 pips) stop. Here’s a summary:
Risked 0.5% of my account at 110.70, SL at 109.15 and first PT at 112.25.
I’ll be watching my trade closely and be ready to add to my positions in case the numbers do come out as well as Trump had expected. Of course, I’ll also consider cutting my losses if the bears decided to shrug off today’s numbers, or if the GDP report missed our expectations.
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