first of all we wish you a happy, healthy and successfully new year 2014!
We hope you had a good start and feel fit for trading with new energy. So, let’s see what we can expect for the beginning of the year:
Now it is confirmed, Janet Yellen will replace Fed chairman Ben S. Bernanke. She is the first woman to head the central bank in its history.
She is supposed to support for Bernanke’s policies that aims for price stability and long-term growth.
And what’s about the tapering?
The committee of the Fed, scheduled to meet January 28-29, probably will cut its monthly bond purchases in $ 10 billion increments over the next seven meetings. The first step towards the exit is taken last month with a reduction of asset purchases from $ 85 billion to $ 75 billion. This could generally lead to a bullish Dollar and maybe to a main downtrend for the Euro as it showed very bearish the first days of January.
The Euro welcomed the new year with his bearish side. It is still trading on the lower line of its up-trend channel.
Under level 1.3570 we expect more short movement until 1.3485 and 1.3410. Above 1.3700 it may rises until 1.3815.
Let’s take pot luck. We will give you daily entries by our signals.
Good trades and many pips!