When you look at the world markets and the policies that are currently dictating the interest rates that all of them are on the verge of actually making serious moves. Interest rate normalisation is long overdue and I mean literally for the last 9 years now there has been minuscule moves that have not even impacted the market except for one comment from the fed which led to a 1500 point drop on the Dow Jones leads all the other indices to follow suit.
So, let’s take a brief look at what is going on with the interest rates and the forecasts of the currencies moving forward:
CURRENT INTEREST RATE 0.50%
In trading terms another term for Sterling is cable and what a beautiful run this currency pair has had over the last 4 months. With Interest rates, nothing is fixed in stone, but Platinum Analysts predict that there may be 1 or 2 interest rates. Currently, Cable is stuck in a trap range and we should be adapting Trading the range with Fib perfection and Trap Zone Strategy.
- As long as cable holds 1.3580 Bulls are in charge
- Longer Term Trendline from March 2017 is still in Play
- If 1.3350 Breaks on Cable the Bears will be back in charge.
CURRENT INTEREST RATE 0.00%
The euro has only acted upon the dollar weakness in the last 6 months after a whole predicted bear year the dollar is the main catalyst in saving the euro in our opinion. The ECB is in no position to turn the game around when it comes to interest rates. Platinum Analysts predict no interest rate increases in 2018.
Euro just like cable is stuck in a trap range and we should be adapting Trading the range with Fib perfection and Trap Zone Strategy.
- As long as Euro holds 1.2040 Bulls are in charge
- Longer Term Trendline from April 2017 is still in Play
- If 1.1920 Breaks on Euro, the Bears will be back in charge.
CURRENT INTEREST RATE 1.50%
As always, we prefer shorting position on Aussie than longs as the price is no way near the fair value of the currency. We have not seen much movement in the interest rates since July 2016 and are very doubtful that there will be any changes in 2018 albeit there are market rumours of interest rate increases in the 4th quarter of 2018.
The Aussie is in Bear mode and if we are correct like we predicted the indices fall then the Aussie will only follow suit. We should only be trading the Aussie in one way and that is short at the present moment in time. Retracement Shorts are the way forward and if you wish to have a look at how the platinum trading institute can assist you in bear markets book a session here.
- As long as Aussie Resistance is at 0.8130 Bears are in charge
- We have a triple Top Formation in play
- Platinum Analysts believe that 0.7500 is on the cards just look for shorting opportunities.
SEE HOW PLATINUM PREMIUM CLIENTS USE THE NEWS TO NET 622 POINTS
Trading Interest Rate Decisions is one of the best Forex Strategies in the market and this is true because you can never miss a trade or the event as both are 99% fixed. If you just traded these rate decisions through the year you could easily take home over 3000 pips.
Let’s look at the way, for example, a fed decision is supposed to be traded
Name of Event: FOMC Interest Rate Decision
Time of the interest rate decision: 19:15
Currency Pair to trade on the day: EUR/USD
Only three trades to take on that particular day:
The Euro moves +75 pips prior to the move at any point in the day short the pair or go long on the pair with a 25 pip stop loss and 40 pip target.
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