FX:EURUSD Euro Fx/U.S. Dollar
The scenarios are quite simple –
A 25bps rate hike, with a dovish Dot chart could push the EUR/USD pair lower to 1.0750 levels.
A 25bps rate hike, with a hawkish Dot chart (less probability) could push the EUR/USD pair to 1.05 levels.
A less than 25bps hike could see a drop to 1.0750 followed by a quick fire correction. The dip could be utilised to initiate long EUR/$ positions.
In case, we do not have a rate hike, be prepared to jump into longs at the first sight as the pair will head towards 1.15-1.17