17 June, 2015
Despite falling in the beginning of the week, at yesterday’s close the pair gained back the losses and is now trading at 1.1260.
The pair continues to be pressurised by the expectations about possible rate hike in the US, the news is due today at 9 pm (GMT +3). Economists expect the rate to remain at the current 0.25%. However, the USD will gain an additional support if the Fed tips about future rate increase.
Investors should also pay attention to the latest figures on the consumer price index, which are due today at 12 pm (GMT +3). Economists expect an increase by 0.3%, which would positively affect the Euro.
Support and resistance
The price is moving along the sideways channel, which is formed by two moving average lines with periods 20 and 100. The nearest resistance level is 1.1270; support level is at 1.1212.
Open short positions after the consolidation of the price below 1.1212 with the target at 1.1150—1.1100 and stop-loss at 1.1270.
Alternatively, open long positions at 1.1270 with take-profit at 1.1370 and stop-loss at 1.1200.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
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