The Federal Reserve On Hold Despite Pressure To Cut

USDCHF 1 Hour Elliott Wave New York Update 5-1-2019

 

The chart above is the New York update to our members prior to the FOMC's press conference. We told our members that dips should be a buying opportunity. The chart shows bullish sequence and right side stamp going higher, indicating our bias. We also place the blue box to indicate the area we expect pair to turn higher in 3 waves at least. The pullback in wave ((iv)) took the form of a zigzag Elliott Wave structure. We bought this dips in Live Trading Room yesterday and currently the reaction higher from the blue box allows us to move stop loss to our entry, creating a risk free trade.

USDCHF 1 Hour Elliott Wave New York Update 5-2-2019

 

 

As the chart above shows, the pair found buyers from the 100% extension area and has reacted higher. This allows us to move the stop loss to break even and we don't need to worry about the trade anymore. Near term, the pair can continue to see more upside as far as pivot at 1.0125 low stays intact.

Conclusion

The Fed affirmed its decision to hold rates steady despite the pressure to cut. With no rate cut seemingly 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 grows. 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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