The US Dollar ripped sharply higher today following the Federal Reserve’s decision to raise interest rates.
While the hike wasn’t a surprise to markets, it was the forecast of THREE more rate hikes throughout 2017 that put a rocket under the buck.
Last week we spoke about EUR/USD reversing out of support and approaching its first point of significant resistance.
Price rejected the level hard and already we’re back to the lows.
At the same time, we had GBP/USD also at resistance.
But after a second push up into the supply zone we identified, it was once again goodnight to the bulls as price couldn’t make any significant higher high.
With the US Dollar trading sharply higher following today’s Fed interest rate hike and 2017 projections, these levels these two pairs are very much in play.
GBP/USD’s risk is more clearly defined, having just rejected out of the resistance zone, but EUR/USD could easily see stops start to be triggered if it breaks that low.
Do you see opportunity trading EUR/USD or GBP/USD? Open a LIVE account with Vantage FX and take advantage.
Dane Williams – @VantageFX
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