Will there be yet more Hawkish Talk from the Fed

September 12, 2016

The Boston Fed Chair Rosengren made a hawkish statement last Friday, mentioning that if rates remain at a low level for long term, will pose risks of overheat to the economy and may result in another recession.

The hawkish statement boosted the market expectations on a September rate hike, and pushed the dollar index up. The major resistance level at 95.00 was broken, followed by 95.20. The bull further tested the next resistance levels at 95.40 and 95.60 then pulled back. A new downtrend line resistance has been formed.

The resistance level is at 95.40, followed by 95.48 and 95.60.
The support line is at 95.20, followed by 95.00 and 94.84.

Be aware of the Fed officials’ speech today as it may influence the strength of the dollar.

EURUSD tested the major downtrend resistance and pulled back on 8th September. The support line at 1.1240 was broken after the hawkish statement, tested the significant support level at 1.1200 then rebounded.

The selling pressure in the price zone between 1.1270 and 1.1300 is heavy.
The resistance level is at 1.1240, followed by 1.1270 and 1.1300.
The support line is at 1.1215, followed by 1.1200 and 1.1167.

Be aware of the Fed officials’ speech today as it may influence the trend of EURUSD.

The Boston Fed’s hawkish statement helped USDCAD surge 1.63% from 9th September to 12th September. The significant resistance level at 1.3000 was broken, followed by 1.3050.

The price is currently testing the next significant resistance zone between 1.3100, which and the major downtrend line resistance at 1.3118. The selling pressure in this price zone is heavy.

In addition, the 4 hourly Stochastic Oscillator is around 90 and the RSI indicator is above 70, suggesting a pullback.

The resistance level is at 1.3118, followed by 1.3140 and 1.3190.
The support line is at 1.3050, followed by 1.3000 and 1.2940.

Be aware of the Fed officials’ speech today as it may influence the trend of USDCAD.

The FTSE 100 index plunged last Friday, broke the downside major uptrend line support. The 8 EMA crossed over 20 EMA. The trend has turned bearish.

Yet the 4 hourly Stochastic Oscillator is below 10, suggesting a rebound.

The resistance level is at 6700, followed by 6750 and 6800.
The support line is at 6650, followed by 6630 and 6600.

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