Yellen says Rate Hike in June 2016 Odds are improving. USD rises. 20160518

Fundamental Bullish USD news explained.

Today late in the trading day, FED chair Yellen made clear that a Rate Hike in June 2016 is more likely to happen. This fundamental news drove the USD higher. In this case it influenced the currency pair USD/CAD. That made a nice profit of 100 pips!

Technical explanation.

The whole day I was bullish from lager timeframes. This screenshot is from 15 min chart. But it was above all my EMA trendlines. All pointing in direction of an upwards move. When price crossed the weekly pivot it was clear there was interest for buying. I stayed long all day and had a good stop position. Below mayor support under 200 EMA. As I was able to get long triggered early on a setup limit order. Later in the day the pair came down to test the weekly pivot. Then the news came out and that launched the pair higher. As my target is slightly higher on the 61.8 fibonacci retracement I took the profit on 100 pips as the speed of the move seems to be slowing down. The meat of the trade was done and we can be happy and satisfied with the profit in our pockets.

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Wilco van Boxtel is Chief Currency Trader & Mentor at TradeReact. He has over 17+ years trading experience since 1998. Besides currencies he knows many other markets and assets. Now he is here to educate and inspire you to be successfull in trading too. Subscribe and follow his lead.