Earn profits on decisions of the US Federal Reserve
The key event of not only this week, but also the past fewmonths, will be the speech made by the head of the US Federal Reserve, JanetYellen. It will take place on September 21, 9:30 p.m. Moscow time, and in it,she will announce the US Federal Reserve's verdict on monetary / lendingpolicy. At the same time, the US Central Bank will make public its updatedforecasts for the growth of GDP, employment numbers, inflation level, as wellas future activities of the regulating authority. Depending on the decision,you will be able to potentially earn profits due to temporary instability ofthe American currency.
Andrey Dirgin, Chief Analyst of Alfa-Forex, believes that if theFederal Reserve ultimately decides to increase lending rates, the US dollarwill experience explosive growth. And should the rates remain unchanged, theattention of players will be pointed towards the general tone of the FederalReserve. Any harsh rhetoric will mean a guaranteed increase of the rate inDecember, whereas a milder tone will make such a possibility insignificant, andturn the dollar on a downwards course.
Andrey Dirgin is confident that the current economic situationof the USA, does not make an immediate increase in the rate very likely, andtherefore, the Federal Reserve will abstain from taking any action. This meansthat later this evening, the dollar will be under immense pressure. Therefore,the following trading tactics for the EUR/USD pair will be viable: Buy at1.1150–1.1200, Stop-Loss at 1.1125, and Take Profit set at 1.1325.
Try implementing this strategy proposed by the Chief Analyst ofAlfa-Forex and make potential profits on our investment ideas.