I must admit that after the Fed confirmed they will maintain the size of the balance sheet and watched the dollar implode towards our buy levels, I was just a bit nervous with our AUD orders. In a defiant manner we literally took the complete opposite side of the overall market consensus of the risk trade direction as measured by equity, fixed income, debt, and FX markets. But despite the violent reaction, our hard work, discipline, and patience paid off as we successfully navigated one of the most highly anticipated Fed meetings in recent months. Elliott teaches us to not trade the economic data that piques the market's interest for a few minutes, but the mass psychology and herd mentality driving the market before, during , and after the economic data piece. Social mood and crowd psychology drive market prices, not economic data pieces. We only care about fundamentals to the degree that they impact market sentiment. Though the FOMC statement was a dollar-bearish story, the market sentiment heading into 2:15 PM was of risk aversion and dollar-bullishness.
So, enough patting myself on the back and onto managing our trade. We booked partial profits this morning at 0.9060 and 0.9023 and have since trailed our stop losses to 0.9140. We are possibly entering a 3rd-of-a-3rd below 0.9000 with 2 units of AUDUSD working. Stick around, this could get interesting
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