Following an upbeat first quarter for the US dollar, we could see a short-term correction on disappointing Federal Open Market Committee (FOMC) outlook, gdp for first quarter and non-farm payrolls data. Nevertheless Wednesday brought FOMC minutes release and also optimism related to them.
Now we can see the dollar rally continuing, with our kept target price at $1.0491. Major driver remains the rate-hike timing speculation challenge, boosting US currency to gain against most of its major counterparts.
Most of Federal Reserve policymakers brought no news to reporters, when Richmond's Jeffrey Lacker said that he favours rate-hike to come even after June's FOMC meeting, while Minneapolis Fed's President Narayana Kocherlakota reiterated that he would like rates to be lifted as early as H2 2016.
From fundamental point of view, we still remain bearish, albeit short-term impact from previous weeks could halt the downtrend. Nevertheless advance of the currency pair is limited now.
From technical point of view, bearish major TP remains at $1.0491.
As for bullish short-term bullish pressure we prefer TPs prices to be put on $1.0772 and later $1.0864.
For any questions of recommendation, feel free to write us on hello@goforex.eu
You can meet us at Forex Expo in Bratislava, in May 20-21, 2015
