No one expects the Fed to hike rates today, but experts believe the Fed is way behind the curve and is under pressure to acknowledge the improvement in the data. Marc Ostwald, Strategist at ADMISI discussed Fed preview in detail on our Finance show today. The show is available on youtube here – https://www.youtube.com/watch?v=2VZ38k42...
Experts are right in stating that actually there is no valid reason for the Fed to hold back. In my view, record high stock markets are screaming rate hike. But it is unlikely the Fed may move today.
Coming back to EUR/USD , a neutral FOMC would be a non-event for the markets. If Fed drops rate hike hint, the pair could head lower to sub 1.09 levels. On the other hand, a dovish talk (very low probability) could push the pair higher towards 1.1080 levels.
Now let us look at what the chart has to say
has classic structures –
symmetrical breakout inside
If charts are to be believed, the one must be ready for a hawkish FOMC statement!