So, after 48 hours of deliberation, the Feds decided to keep its benchmark interest rates unchanged. Only one member-Kansas City Fed president Miss Esther George of the FOMC voted for a rate increase by 25 basis points. Well, this was anticipated and we expected the NZD to rally, which it did, breaching through the 0.71 mark and progressively moving towards the ultimate 0.73 price level. It remain likely that in the next meeting, interest rates might be increased by 25 basis points since the Yellen pointed out that global risk and economic uncertainty have faded and there is expectations of a stronger job growth in the coming months. The only negativity which was highlighted was the drop in investments amongst businesses in the last couple of months and the stagnant inflation not moving towards the 2% target.
So now that it is clear that there is no rate hike maybe until September 21st, I think we should be unloading the USD at all lows in the charts this coming weeks. So to the charts and this will be our strategy:
Technically, there is increasing buy momentum as observed on how the stochastics are behaving. Already by close of trading day Tuesday, there was a confirmation of a buy signal at it turned off from the 38.2 Monthly Fibonacci level.
Our entries today will be made in the 15 minutes charts as follows:
Buy Limit: 0.7075 (Yesterday’s High and at 100 Fibonacci level-support)
Have a good trading day.