FED cuts the rates with 75 bps
FED cuts rates with 75 bps. In the statement again were mentioned the downside risks to growth and we can expect further easing. Some analysts expect Fed funds rate at 1%. The reaction of the forex market was choppy after the announcement. EUR/USD is extremely overbought and is due for correction but at the same time the dollar sentiment is as bearish as it can be. Watch the support @ 1.5675 (5 day MA and yesterday’s low). If it is broken a shooting star reversal pattern will be confirmed and correction towards 1.5490 is expected. While the market is above the support level the next target is 1.5902 and then 1.6000.
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