Market Week Review: The FOMC Pivot That rallied the Us Dollar index (DXY):
This week’s Federal Open Market Committee (FOMC) meeting struck a massive surprise that triggered high volume volatility across major fx pairs and indices.
What Happened at the FOMC?
The headline came off just as I anticipated. The Federal Reserve voted unanimously (12-0) to raise the federal funds rate by 25 basis points, lifting the target range to 3.75% – 4.00% according to Admirals. This decision immediately set the tone for my Hawkish bias on the US dollar index (DXY)
📉 Before the News: Pre-FOMC Consolidation & Bias
Asset: EUR/USD
Timeframe Context: Analyzed strictly on the Daily, 4-hour and 1-hour charts.
The Bias: Bearish. Price was consolidating tightly right below a major 4H resistance zone, forming a classic liquidity sweep setup ahead of the 2:00 PM EST release.
The Plan: I wasn’t trying to trade the initial 1-minute candle chaos. Instead, I set my limit other at my 1hr ob and fvg for the post-news impulse, and Sl at Mondays swing high on the 4hr timeframe.
📈 After the News: Execution & Management
The Play: As expected, the hawkish rate hike slammed EUR/USD lower. Following the initial plunge, price pulled back gracefully into my identified 1h/30m mitigation block during the press conference triggering my position in.
The Result: A Clean flush downward targeting the external liquidity pool resting below the daily lows. My Risk-to-reward ratio cleared at roughly 1:2.2, wrapped up cleanly minutes after the news hit.
Community Check-In 🗣️
This trade setup was dropped before it happened right in the GIDA MOT WhatsApp community.
How did you guys trade the FOMC volatility this week? Did you catch the setup or did you get caught on the wrong side of the rate hike or did not participate?
Drop your charts and analysis in the thread below, let's talk about it!