Global macro overview for 21/09/2016:

The most anticipated event of the month, the US Federal Open Market Committee interest rate decision, statement, economic projections and press conference are scheduled for release at 06:00pm GMT. Market participants are expecting the interest rate to be left unchanged at the level of 0.50%, just like a month before. According to CME Group FedWatch Tool, the possibility of immediate interest rate hike to the level of 0.75% is only 15%, which is again in line with the overall consensus. In conclusion, no interest rate hike is expected, but overall hawkish comments on the press conference will be nothing special this time as the market is starting to discount the possibility of a December hike.

Let’s now take a look at the EUR/USD technical picture in the 4H time frame. The recent bounce from the important intraday support at the level of 1.1120 did not last long and the bearish pressure to break this level is clearly visible. Please notice that the next support is almost 100 pips lower, so this is why any violation of the 1.1120 level might be a game changer for bulls.

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The material has been provided by InstaForex Company – www.instaforex.com

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