Buy on a level breakthrough of 1.1466 with 1.1530 target. Stop loss = 1.1406.
Reason for the trading strategy
In April, the volume of industrial production in the US declined by 0.3% (m/m), while the US consumer confidence index declined from 95.9 p. to 88.6 to p in May. The data reflect a contraction of the real sector of the US economy and reduced consumer activity among American households. Against this background, the US Federal Reserve is unlikely to make a decision to quickly increase the country's key interest rate. The single European currency, taking advantage of the weakness of the US dollar, may soon test the 1,153 level.
October 21, 2016 Gold prices drop in Asia amid stronger greenback
On Friday, gold dropped during Asia trade amid a strengthening greenback as well as surging chances of a rate hike weighing on the hedge commodity...
October 21, 2016 ECB holds the rate unchanged with the pressure on Draghi
After a brief upturn seen in the late Asian trading, the currency retreats to the Wednesday close showing a tepid response to the ECB policy update. The New York FED leader William Dudley comments offered a support to the Dollar rally although the focus remained on the US inflation...
October 21, 2016 EURGBP Tests Major Support
This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations...
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