Wednesday, 14 December 2016

EUR/USD Fed's Dot-plot Triggered Bearish Reaction

Finally it became clear that the Federal Open Market Committee is raising the benchmark interest rate by 25bp to range of 0.50% to 0.75%. Furthermore the central bank is going to extend the dot-plot to three rate hikes in the upcoming year.
The EUR/USD pair was failed to hold above 1.0600 mark ahead of the conference. After the press release the pair tumbled to 1.0530 and marked an inraday low even lower at 1.0495.
As seen on the H4 chart the price has moved well below the moving averages. RSI has turned sharply to south and is currently close to 30 level. Stochastic is currently placed within mid-lines but displaying strong bearish momentum. 
First support is seen at 1.0500  and lower at 1.0450. Resistance now is located at 1.0560 and higher at 1.0600.


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