Fed Raises Rates; Forecasts THREE More in 2017

December 15, 2016

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.

EUR/USD 4 Hourly:
161215_eurusd_4hourly
Click on chart to see a larger view.

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.

GBP/USD Daily:
161215_gbpusd_daily
Click on chart to see a larger view.

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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