All Eyes On Fed Funds Rate 🏛

Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.

I am not a fundamental expert (nor an economist) but I found FEDFUNDS chart really interesting!

I never thought that basic technical analysis tools can also be applied to such economic instruments!

As per my last analysis (attached on the chart) FEDFUNDS traded higher and broke the red wedge pattern upward.

Now we are technically bullish, expecting big impulse movements to push price higher, and small bearish correction movements.

We all know that Federal Reserve will most probably increase the interest rates by another 50 basis points (0.5%) next week (on Wednesday)

By adding another 0.5%, FEDFUNDS will be approaching a strong resistance zone in blue (4.7% - 5.7%) which might hold the price down for a bearish correction to start and push price lower till the previous high in gray again.

It would be interesting to hear your thoughts on this one.

Always follow your trading plan regarding entry, risk management, and trade management.

Good luck!

All Strategies Are Good; If Managed Properly!
~Rich