In the FOMC meeting yesterday, the Fed showed that it would endure inflation rising above its goal for a time.
Policymakers also expect another interest rate increase would be warranted “soon” if the U.S. economic outlook remains fit.
The Fed appeared to let inflation run above the 2% target for a “temporary period”, with no rush to tighten monetary policy.
An important small edit, the Fed members had discussed raising the interest rate by 20 basis points, rather than by a widely anticipated 25 basis points.
Trump poured more doubt on plans for the summit with North Korean leader Kim Jong Un, saying he would know next week whether the meeting would take place or not.
The U.S. Commerce Department said on Wednesday that it would apply a national security investigation into car and truck imports, a move that could lead to tariffs like those on steel and aluminium in March.
Trump also called for “a different structure” in any trade deal with China, raising uncertainty over the negotiations.
On Thursday, China’s Commerce Ministry clarified that they didn’t promise to cut China’s trade surplus with the U.S. by a certain figure and that it hopes the U.S. implements measures promised during trade negotiations as soon as possible.
On the daily chart, the price has broken the lower trend line from the high of 2017.
But the price is located at the key resistance of 94.25.
There’s a bat harmonic pattern that boosts the retracement bias for the index.
Divergent on RSI assured this possible downfall.
So, If the price bounces beneath from the resistance level, it may reach 92.6 to retest the broken trend.
On the daily chart, the price had a false break beneath the support zone 0.75-0.7535.
That enhances the harmonic pattern AB=CD, with breaking a descending channel
The pair had risen with an engulfing candle and pulled back with a hammer, touching the support zone again.
Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 and the broken uptrend.