As assumed by economists of large financial institutions and predicted the vast majority of analysts, during the August monetary policy meeting, the Federal Open Market Committee (FOMC) decided to keep the federal funds rate within a fixed range of 25 basis points (1.75% -2%).
In the content of the monetary policy statement, only slight changes occurred and those were mainly related to household expenditures (earlier it was suggested that they "increased" now that they "have clearly increased." In addition, the FOMC reported a strong increase in economic activity, maintaining the unemployment rate at low levels, the position of 12-month inflation at a small distance from the 2% ceiling and no change in forwarding guidance.
Let's now take a look at the US Dollar Index reaction at the H4 time frame after the decision was made. The changes are hardly noticeable as the price is still hovering around the golden trend line resistance as the bulls are trying to test the technical resistance at the level of 94.93. The price is still inside of the consolidation zone between the levels of 94.10 - 94.93 but after the FED decision the technical indicators are biased to the upside: momentum is above its fifty level and the stochastic is bouncing from the oversold levels. Any violation of the level of 94.93 will open the road towards the next target at the level of 95.25.
