Last FOMC meeting was a bit hawkish and now we can speculate again about rate hike in December or Q1 2016. As I previously stated I didn’t expect any hike this time. But, there is also a disagreement between FED members as we noticed that Richmond FED president – Jeffrey Lacker has been very hawkish stating that rate hike should have already been adopted.
Technically the pair dropped to test 1.0900 after last FOMC meeting and we still favour short trades. Selling into rallies is an option providing that 1.1120 holds the rally. POC comes in 1.1025-50 zone (descending trend line, overhead 38.2 fib, Hidden bearish divergence type 2) and if the zone rejects the price the pair should proceed towards 1.0900 and if 1.0900 breaks 1.0840 and 1.0800 are targets. Hidden divergence type 2 shows up when price is making a Lower High and Oscillator is double toppish. It adds more strength to now moment sellers.
So we are eyeing POC zone but as I explained 1.1120 should hold for the next rally.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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