The Federal Reserve On Hold Despite Pressure to Cut

  • The Federal Reserve shows no bias to hike nor cut interest rate.
  • Fed Chairman Jerome Powell believes subdued inflation is “transitory”.
  • U.S. stocks fell and the Dollar strengthens as odds of a rate cut drops.
  • Technical Analysis using Elliott Wave suggests U.S. Dollar should continue to strengthen.

USDCHF Daily Elliott Wave Shows Bullish Sequence

USDCHF 1 Hour Elliott Wave New York Update 5.1.2019

USDCHF 1 Hour Elliott Wave New York Update 5.2.2019

Conclusion

The Fed affirmed its decision to hold rates steady despite the pressure to cut. With no rate cut seems to be on the horizon for the rest of 2019, the U.S. Dollar enjoys another rally. The dollar can continue to find support as the yield differential between the U.S. and other countries stay the same or growing. Elliott Wave technical analysis on $USDCHF also suggests that the pair, and by extension the U.S. Dollar, can continue to strengthen.

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