Buy on a level breakthrough of 1190 with 1204 target. Stop loss = 1180.
Reason for the trading strategy
Yesterday, the US Federal Reserve kept its key interest rate unchanged in the range of 0-0.25%, as expected. According to J. Yellen, the economic conditions have not yet justified an interest rate increase. The US Federal Reserve lowered the forecast for US GDP growth for 2015 from 2.3-2.7% to 1.8-2.0% and raised the unemployment rate forecast from 5.0%-5.2% to 5.2%-5.3%. The inflation forecast in 2015 remains unchanged at 0.6%-0.8%. Most US Federal Reserve officials expect one or two rate increases this year (up to 0.5%-0.75% by the end of this year). According to J. Yellen, the importance of the first rate increase should not be overestimated. She believes that there is still some cyclical weakness in the labor market, and the current year inflation will remain low due to low oil and import prices.