Buy on rebound from 1.2248 level with 1.2400 target. Stop loss = 1.2200.
Reason for the trading strategy
The November decline in inflation in the United States to the level of 1.3% made the US Federal Reserve soften its rhetoric and revise its forecast on the average level of the federal funds rate for 2015 from 1.375% to 1.125%. Nevertheless, the euro has decided to re-adjust itself to the 2014 lows. Near the 1.2248 level, demand for the euro is likely to rise again.
October 26, 2016 Greenback is powered by Fed rate expectations
On Wednesday, the US dollar was backed by hopes that American interest rates will edge up by the year-end. It stood flat during Asia trade, just below a nine-month high reached overnight, while the Australian dollar earned as inflation data doused the probability of a rate drop there...
October 26, 2016 Rising rate hike odds push Dollar
The Greenback extended its rally to a nine-month high against other major peers against the rising bets of a FED tightening in December. As rumors are circling the next US leader saying that they will shift the stimulus burden from FED via changes in the fiscal policy...
October 26, 2016 Gold futures edged higher on Tuesday
The XAU/USD pair traded flat on Tuesday. The price remained between 1270 and 1260 dollars per ounce during the day. Gold prices struggled to find support around 1260. Sellers failed to break the level and the yellow metal bounced upwards and recovered to the upper boundary of the range...
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