Thursday, December 15, 2016

FED Did Hike The Interest Rate After All



I did not believe that FED would increase the interest rate, but it did happen after all. Obviously there were good enough reasons to take such a step. What is more, FED Chair Janet Yellen announced that they are preparing to hike the interest rate a few more times in the coming year. Of course, the market reacted both wildly and adequately to these news.

EUR/USD began its fifth wave of the move to the downside which has been forming for the past few years and which resembles a large range developing in a rather clear range channel. If that is the case then we will likely see the EUR attempt to reach parity.


The USD/JPY impulse move to the upside continued. My hope is that it won’t form a higher high than the 125.854 high that was formed in June 2015. This impulse strongly resembles a fifth wave from the Elliott Wave Theory which could turn out to be shortened. For now it is too early to tell.

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