USD Goes Up Following Fed’s Decision to Raise Rates

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USD flew sharply higher today after the Federal Reserve’s decided to raise interest rates.

While it wasn’t really a surprise to the markets, it was the forecast of 3 more rate hikes coming in 2017 that caused an imaginary stunned silence.

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 hours

EUR/USD 4 hours

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

GBP/USD daily

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.

This is a guest post originally appeared on Vantage FX. Reposted with permission.

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