Technical trade - Sell
Technically the trade is poised for further decline. Currently testing daily 21EMA and also is at the rejection area of 38.2% and 61.8% Fibonacci retracement. Previously made a lower low in the price structure suggest a potential for further weakness around 1.1520 level with a target 100 pips lower.
Fundamental trade - Buy
Playing weakness in the USD cased primarily by USD short position reduction and some short covering.
Powell is expected to stay behind FED despite Trump's comments overnight. No doubt that Trump would like to see interest rates to stay lower however according to the Fed Futures there is 1 rate hike priced in and 30% probability of additional rate hike in December
Technically the trade is poised for further decline. Currently testing daily 21EMA and also is at the rejection area of 38.2% and 61.8% Fibonacci retracement. Previously made a lower low in the price structure suggest a potential for further weakness around 1.1520 level with a target 100 pips lower.
Fundamental trade - Buy
Playing weakness in the USD cased primarily by USD short position reduction and some short covering.
Powell is expected to stay behind FED despite Trump's comments overnight. No doubt that Trump would like to see interest rates to stay lower however according to the Fed Futures there is 1 rate hike priced in and 30% probability of additional rate hike in December