FX.co ★ Global macro overview for 28/07/2016

Global macro overview for 28/07/2016:

The U.S. Federal Reserve ended its two day Federal Open Market Committee (FOMC) meeting and it decided to keep the interest rate unchanged at the level of 0.50%. Due to the fact that no press conference has been scheduled after the meeting, the market participants have focused on FOMC Statement. The most important line from this paper was: "near-term risks to the economic outlook have diminished", which is a quite hawkish point of view. Nevertheless, this information was not good enough for the US Dollar to rally higher, so the global investors are waiting for the FOMC Minutes release within next three weeks to check if any internal FED debates were more biased towards a rate hike this year.

Let's now take a look at the US Dollar index technical picture at the daily time frame. The key resistance area marked as a grey rectangle has shown to be a tough zone to crack for bulls so far and the price reversed towards the lower channel boundary around the level of 96.50. Nevertheless, the outlook still looks bullish, but to confirm this scenario, the bulls must break out above the golden trend line around the level of 97.57. Otherwise the bears will take the control over this market once again.