The Forex Market Is Expecting The FED Decision

The news that the entire finance world is expecting, including the Forex market, is about to drop from the US very soon. Will FED hike the interest rate or not? For the moment the expectation is that the interest rate will be raised from 1.5% to 1.75%.

Whatever FED decides, the market reaction should be turbulent and I think we will see sharp and big movements.

From a purely technical analysis point of view the EUR/USD pair has another movement to the upside to form in order to finish its rally from 1st January 2017.

On the W1 time frame I have marked the significant (for the moment) trend lines, the most important being the upward diagonal trend line of the rally from 1st January 2017 (in red). It is obvious that the test of the trend line is becoming more and more probable and the final rally of the upward movement could begin right after it’s tested.

FED should announce its decision in less than half an hour so we’ll see what will happen.