Forex traders are eagerly anticipating the FOMC release tomorrow. Right now the consensus says no change from 2.0%. This is a recent shift in sentiment and I would not discount the potential for a surprise, if not from a rate change, the market's reaction to the news and buzz around the announcement. The Fed is in a difficult situation right now having to do battle with both inflation and slowing growth. Missteps here could be very problematic in the long term.
Preparing for potential breakouts with entry orders or conditional orders is not a bad idea as the market may move very quickly tomorrow. Knowing how to forecast the possible upside is also important as we try to grade the risk and profit potential of any single position. In today's video, I will go over one way to approach this forecasting problem that has been very productive in the past. Specifically, I will be applying it to the potential pattern breakouts on the EUR/USD and USD/JPY.
