June 14, 2018 8:55 am
More than 80% analytics expected that Federal Reserve increases the interest rate by 0.25% to 2%. And they were right. Jerome Powell said, “The economy is doing very well.” Also, he noted that inflation data is encouraging but it’s still not good enough. Bring to mind that it’s the second rate hike in 2018 and two more hikes are been waiting.
Rate decision’s release caused a big volume and volatility hike in EURUSD. But currency pair returned to former positions rather quickly. Now EURUSD is testing 1.18 resistance. Seeing rate hike we expect EURUSD rebound from the resistance and fall at least to 50% Fibo at 1.1680.
RUS50 (RTS Index)
Today we expect a bullish correction in RUS50. Technically there are 3 reversal signs on 1Day chart:
• Strong bullish convergence
• “reversed hammer” candlestick pattern
• Bounce from 23,6% Fibo.
So if the fundamental signals will not discourage buyers RUS50 can rise to $1200. There are next hard resistance and 50% Fibo.
So our targets for:
EURUSD – 1.1680
RUS50 (RTS Index) – $1200