After the FOMC meeting the US Dollar Index reached a higher low supported by double bottom in the H1 chart. Now, it is headed towards higher highs.
“Federal Reserve officials face a conflict as they plan to start raising interest rates later this year: There has been a lot of progress in their goal for U.S. job growth, but little in their objective of modestly rising consumer prices,” Jon Hilsenrath writes in his article.
The Fed kept the interest rates unchanged at 0-0.25%. The US economic activity sligtly grew, employment rose higly, and the unemployment rate fell.
Barclays: we still expect the Fed to raise its interest rate in September;
According to BNP Paribas client research team, the Fed is expected to raise interest rates in December.
Goldman Sachs chief economist Sachs Hatzius: The Fed’s rate hike in December is likely to be larger than September’s one.
Technical view: the 50Dsma is found at 96.00 and 100Dema is found at 95.60. Intraday support is found at 96.80 and 96.50. The weekly support is seen at 96.30 (Monday’s low). We have been advising “Until the index closes above 95.60, buyers will enjoy the upper hand”. The index reached a high at 97.32. We are updating the target at 100.00 with the same sl 96.30.
The material has been provided by InstaForex Company – www.instaforex.com