Fed Kocherlakota: all accounts hike in 2015 is inappropriate. During the year 2015 the Federal Reserve to maintain interest rates unchanged will promote employment; raise interest rates during 2015 will slow to 2% inflation target. Inflation will take several years to reach more than 2%.
China’s economic growth is one of the factors causing uncertainty in the market volatility.
Today traders eye NFP. In case, if the NFP produce negative reading (below expectations) this may prevent rate hike. We expect the Fed look into Chinese economy before they go for a rate hike.
Technical view: The pair managed to hold the 50Dsma bounce on Wednesday, closed above all the daily moving averages. Readers can remind, we initiated buying position with sl 0.9250 on August 25th.
The parallel resistance seems at 0.9797 rounded to 0.9800. As of now today Asia’s session, the pair unable to breach the previous day’s high.
In the four chart, we can observe inverse head and shoulder pattern. The pair managed to close above the neckline. The support finds at 0.9680, 0.9650 and 0.9630. In hourly and four chart, the oscillators are in an overbought zone. Traders can use a dip to buy with sl 0.9550. The current trend promising more head room with immediate strong resistance seems at 0.9800.
Intraday resistance seems at 0.9780, 0.9800 and 0.9830.
Safe buying triggers above 0.9800 aim sat 0.9830 and 0.9850.