Global macro overview for 22/09/2016:
Just as anticipated yesterday, the U.S. Federal Reserve kept the benchmark interest rate unchanged at the level of 0.25% in September but hinted in the Federal Open Market Committee (FOMC) statement that there will be one rate hike in 2016. Moreover, the first time since December 2014, three out of ten FOMC members dissented with the decision. Those officials were Esther George, Loretta Mester and Eric Rosengren and all of them voted against holding rates steady, preferring to raise rates immediately by a quarter-percentage point. In conclusion, the next interest rate hike might come as soon as December 2016, just after the presidential elections are over.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. After the news release, bulls managed to break out higher above the technical resistance at the level of 1.1211 (now support) and it looks like they are heading higher towards the level of 1.1283. Nevertheless, it is worth to notice that none of the important levels has been violated and the market is still trading sideways.
