Buy on a level breakthrough of 1.1131 with 1.1204 target. Stop loss = 1.1071.
Reason for the trading strategy
The Federal Reserve meeting minutes for April have indicated a low probability of an increase of the US federal funds rate in June. Low growth of the US GDP in Q1 2015, inflation, which is well below the target level of 2%, and strong dollar do not allow the US Federal Reserve to proceed with a rapid tightening of monetary policy. The news is positive for the non-dollar assets.
September 27, 2016 The US election beta
Having obsessed about an event that did not happen this month (a Fed tightening), markets now turn to obsessing about an event that will happen, namely a change of US President...
September 27, 2016 Oil prices are moving towards stabilisation
The oil prices start the week on an upbeat note as the informal OPEC meeting may end with a positive agreement for the oil market, which could resolve in production kerbs and freeze said the Algeria’s Energy Minister on Sunday...
September 27, 2016 US politics cast shadow over NZD
It's been an interesting start to the week as politics is looking likely to take centre stage amongst a market which is becoming increasingly worried over the result of the US presidential election...
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