The risk appetite factor back to the table after the Chinese data hurts the sentiment. The price has been consolidating at 20Dsma for five straight sessions finally end far below the 20Dsma.
“King of new debt” Gundlach: oil prices rose above $ 38 / barrel resulting in greater challenges.
The US market in 2016 is expected to be a rate hike, while the Fed is 4 times.
The market itself does not need to show negative interest rates.
Fed Agencies Jon Hilsenrath: FOMC may vary depending on the market and uncertain global growth continue to feel anything in the March monetary policy meeting, the options for future action will be left in April or June.
Fed Chairman Xi Yelun on terms that could mean the Fed will release subtly flexibly in April or June, a few weeks before the meeting due to economic performance and hike message while avoiding disappointing economic data in, or the case of the emergence of new market turbulence pledged to take action.
Citi CFO Gerspach: Fed may raise interest rates twice in 2016, but is more likely to raise interest rates again.
At all time frames the pair trading on a bearish note.
Trading support finds at 112.15, 111.60 and 111.00
Resistance seems at 112.80, 113.15 and 113.60
Earlier the pair formed a double bottom around 110.00 levels. If the price fails to hold the double bottom weekly and moving averages will be in focus.
The 200Wema finds at 108.00 and 200Msma finds at 106.00 levels. Flip side 20Dsma seems at 113.20 levels.
Until the price close above the double bottom, retracement remains in play strong resistance seems at 115.00 levels.
For trading perspective, selling opens below 112.00.