Macroeconomic overview
Philadelphia Federal Reserve Bank President Patrick Harker said he would be open to raising interest rates again at the U.S. central bank's March meeting if growth in jobs and wages continues.
Harker, one of ten voters this year on the Fed's rate-setting panel, said that to support a rate hike he would need to see further GDP growth and continued strengthening of the labor market, "not just in terms of the job numbers but also seeing continued wage growth and income growth because that will ultimately feed into inflation."
U.S. employers added more jobs last month than expected, but hourly wages increased by only three cents, suggesting there is still room for the job market to improve before there is much upward pressure on prices.
Harker tread carefully when it came to questions about how policies under President Donald Trump might affect the economy. He said he had not seen enough details of the new administration's tax or infrastructure plans to make any judgment about how they would impact growth.
Technical analysis
The EUR/USD broke below the 14-day exponential moving average and the support at 38.2% fibo of November-December rise. This is an important short-term bearish signal. We think that a further fall to at least 1.0620 (January 30 low) is likely in the near term. The next support would be the area between 1.0590 (January 19 low) and 1.0581 (50% fibo of January-February rise).
Trading strategy
The negative scenario realized for our EUR/USD long position. The short-term position was stopped at 1.0690. Our long-term view is unchanged. We will be looking for an opportunity to buy this pair again at 1.0595.
GrowthAces.com - Daily Forex Trading Strategies
Philadelphia Federal Reserve Bank President Patrick Harker said he would be open to raising interest rates again at the U.S. central bank's March meeting if growth in jobs and wages continues.
Harker, one of ten voters this year on the Fed's rate-setting panel, said that to support a rate hike he would need to see further GDP growth and continued strengthening of the labor market, "not just in terms of the job numbers but also seeing continued wage growth and income growth because that will ultimately feed into inflation."
U.S. employers added more jobs last month than expected, but hourly wages increased by only three cents, suggesting there is still room for the job market to improve before there is much upward pressure on prices.
Harker tread carefully when it came to questions about how policies under President Donald Trump might affect the economy. He said he had not seen enough details of the new administration's tax or infrastructure plans to make any judgment about how they would impact growth.
Technical analysis
The EUR/USD broke below the 14-day exponential moving average and the support at 38.2% fibo of November-December rise. This is an important short-term bearish signal. We think that a further fall to at least 1.0620 (January 30 low) is likely in the near term. The next support would be the area between 1.0590 (January 19 low) and 1.0581 (50% fibo of January-February rise).
Trading strategy
The negative scenario realized for our EUR/USD long position. The short-term position was stopped at 1.0690. Our long-term view is unchanged. We will be looking for an opportunity to buy this pair again at 1.0595.
GrowthAces.com - Daily Forex Trading Strategies