Subscribe to RSS

Forex Technical Analysis EURUSD : 16 December 2015

Fed meeting results and Yellen speech

On Tuesday the November inflation data were released in the US that made the market participants more confident about the interest rate hike. On Wednesday, December 16, at 20:00 СЕТ the US Fed will announce its decision and half an hour later Janet Yellen will comment on it. the interest rate hike has been expected for most of this year. How the currency rates will react on it?

Last time the Fed increased rates in 2006 and they remain unchanged since 2008. According to the polls, most of investors expect the considerable increase of the rates. Fed Funds Target Rate currently being at 0.125% may be increased to 0.375%, or threefold, according to consensus forecast. In 2006 it was at 5.25%. On Tuesday the core inflation for November came out which excludes food and energy. It increased by the modest 0.2% since October which was in line with expectations. This data made the interest rate hike more probable. Fed relies exactly on the core inflation while making its decisions and in this case the reading shall be low. The second indicator of importance is the labour market data which are currently strong and support the case for the significant rate hike, as market participants see it. The US unemployment fell to 5% in November, the lowest since 2008. In theory, interest rates hike shall support the US dollar and push down the precious metals prices. On Tuesday after inflation data came out the US dollar index slightly edged up while euro and gold headed south. Nevertheless, the plot thickens as markets are overly optimistic and the Fed may increase the rates just a bit for the first time. Let’s have a look at euro chart .

USDCNH

On the daily chart EURUSD:D1 moves sideways almost since the start of the year. Now it has verged its mean and the 200-day moving average and is traded in a narrow range for two weeks. The Parabolic and MACD have formed the buy signals. RSI is neutral and above 50. It has not yet reached the overbought zone, no divergence is seen. The Bollinger bands have contracted which may mean lower volatility and are tilted upwards. In our opinion, the momentum may develop when the price surpasses the last fractal high and 200-day moving average at 1.105 or falls below the sideways support at 1.078. The movement will depend on the market reaction on the Fed interest rate decision and the following speech of the Fed Chair Janet Yellen. The market will choose direction itself. Two or more positions may be opened symmetrically: having opened one of the orders the second may be deleted as the market has chosen the direction. Having opened the pending order we shall move the stop to the next fractal high (short position) and fractal low (long position) following the Parabolic signal every 4 hours. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop-loss level without reaching the order, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Sell
Sell stop below 1.078
Stop loss above 1.105
Position Buy
Buy stop above 1.105
Stop loss below 1.078

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$5000 BitCoin Rewards Bonus Forex Promotion – UFX

$5000 BitCoin Rewards Bonus Forex Promotion – UFX(0)

$5000 BitCoin Rewards Bonus Forex Promotion. Only with UFX Broker can you Trading  BitCoin without the need of a Bitcoin exchange or any complicated Bitcoin wallets and addresses. Link:  $5000 BitCoin Rewards Bonus Promo Link:  $50 Free and Trade in Three Steps Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion

300% Tradable Bonus Promo up to $3000 – MarketsYes

300% Tradable Bonus Promo up to $3000 – MarketsYes(0)

300% Tradable Bonus Promotion up to $3000. MarketsYes is offering all prospective clients’ deposit for up to 3000 USD/EUR/GBP a 300% Forex Tradable Bonus. Link:  300% Tradable Bonus Promotion Link:  Risk Free Trade plus Forex Free Signals Available to: All new traders Ending Date: 31 December 2018 Bonus Offer: 300% Tradable Bonus Promotion up to

Get 300% Ramadan Welcome Bonus Campaign – FBS

Get 300% Ramadan Welcome Bonus Campaign – FBS(0)

Get 300% Ramadan Welcome Bonus Campaign. Register a Ramadan Forex Live Trading Account now and get a 300% Ramadan Welcome Bonus Campaign for deposits starting from $100 Link:  300% Ramadan Bonus Campaign Link:  $123 Forex No Deposit Bonus Link:  100% Deposit Bonus Promotion Available to: All new traders Ending Date: 31 December 2018 Bonus Offer:

$100 Binary Options No Deposit Bonus Contest – AYREX

$100 Binary Options No Deposit Bonus Contest – AYREX(0)

$100 Free Binary Options No Deposit Bonus Contest is a competition open to all AYREX account holders via demo accounts created automatically upon registration and used solely for contest participation Link:  $100 Free Win in Just One Hour Link:  $30 Binary Options No Deposit Bonus Link:  30% Binary Options Deposit Bonus Contest Ending Date: 31

$50 Free Bonus Promotion Start Trading Bitcoin – UFX

$50 Free Bonus Promotion Start Trading Bitcoin – UFX(0)

Get a $50 Free Bonus Promotion Start Trading Bitcoin with UFX. Forex Trading Bitcoin with UFX is simple and gives you the opportunity to increase your return whether BTC prices RISE or FALL Link:  $50 Free and Trade in Three Steps Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Available

30% Binary Options Welcome Bonus up to $1000 – Ayrex

30% Binary Options Welcome Bonus up to $1000 – Ayrex(0)

30% Binary Options Deposit Bonus Up to $1000 to all new Traders. Welcome Bonus can be applied to a deposit that equals 100 EUR/USD or a larger amount Link:  $100 Free Win in Just One Hour Link:  $30 Binary Options No Deposit Bonus Link:  30% Binary Options Deposit Bonus Ending Date: 31 December 2018 Bonus

Up to 200% Bonus Forex and Binary Options – Grand Capital

Up to 200% Bonus Forex and Binary Options – Grand Capital(0)

Up to 200% Bonus Forex and Binary Options Promotion to your Deposit to All clients. The Bonus Promo size ranges from 60% to 200%, depending on the account type, deposit amount and the term of trading with Grand Capital. Link:  Up to 200% Bonus to your Deposit Link: Up to 444% Profit Receive for a

$15 Cashback Rebate Bonus per Lot Traded – FBS

$15 Cashback Rebate Bonus per Lot Traded – FBS(0)

Get $15 Cash back Rebate Bonus per Lot Traded to All new traders. $15 Cashback Rebate Bonus service is unavailable for the clients, who registered their accounts via their partners. Link:  $123 Free Special Bonus Promotion Link:  100% Deposit Bonus Promotion Link:  $88.8 Lucky No Deposit Required Bonus (for Malaysian traders) Available to: All new

100% Cashback Loyalty Bonus & $50 Free Bonus – UFX

100% Cashback Loyalty Bonus & $50 Free Bonus – UFX(0)

UFX 100% Rewards Cashback Loyalty Programme and $50 Forex No Deposit Bonus Special Bonus to All new and existing accounts. Learn about Forex trading bonus promotion Link:  $50 Free and Trade in Three Steps Link:  100% Rewards Cashback Loyalty Promo Link:  $50 Free No Deposit Bitcoin Bonus Available to: All new trading account Ending Date:

Free Trading Signals and Forex Free E-books – Trade12

Free Trading Signals and Forex Free E-books – Trade12(0)

Get 100% Forex Deposit Bonus and Free Forex Daily Trading Signals, Forex Free E-books, Boost your trading with a free 100% Welcome Deposit Bonus to your Live Trading Account. Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  50% Exclusive Deposit Bonus Link:  Free Trader Education and Free Ebooks Link:  Free

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories