Buy EUR/USD at 1.1320
|MyFXspot.com trade ideas:
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EUR/USD: buy at 1.1320, take profit at 1.1470, stop-loss 1.1255
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USD/CAD: short at 1.3350, take profit at 1.3010, stop-loss 1.3485
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XAG/USD: long at 15.50, take profit at 16.50, stop-loss 15.00
Market Overview
The Fed released its minutes yesterday. Though several Fed participants thought a rate increase would be necessary only if inflation unexpectedly surged, "several other participants indicated that, if the economy evolved as they expected, they would view it as appropriate to raise the target range for the federal funds rate later this year."
A raft of Fed policymakers speaking since the Fed's January pledge of patience have insisted the economy is in a good place. But doubts have remained, with traders in U.S. interest-rate futures placing increasing bets that the Fed will need to ease policy by early next year to counter a downturn.
With the U.S. economy facing significant headwinds, the Federal Reserve should align its balance sheet policy with its new "patient" approach to interest rates, San Francisco Federal Reserve Bank President Mary Daly said.
EUR/USD bulls remain in control despite the failure to register a daily close above the 1.1362 Fibo, a 38.2% retrace of the 1.1570 to 1.1234 (January to February) drop, despite the break above. The scope is for an eventual break above the 30-day MA, which is currently at 1.1373. We are looking to get long on near-term dips to 1.1320.
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