It is very possible that Yellen may continue with her hawkish tones at the upcoming FOMC meeting. Nevertheless, as I stated in earlier updates, all eyes will be on the UK referendum this month (23 June 2016) as to whether the UK will remain in the EU. The uncertainty of a Brexit raises many uncertainties around the UK economy and the future of the EU. I do not expect the US Fed to raise rates ahead of the UK referendum. Should the UK decide to remain in the EU, then it is very possible, that the US Fed may raise rates in the July meeting.
Technically, the EUR/USD is acting as planned as shown in the previous technical coverage where we saw it retracing towards 1.1220 with some rejections within the zone. At this point the scenario is the same. As long as 1.1175 holds we should see EUR/USD potentially up, rejecting from 1.1200-20 towards 1.1260 (H4,50.0,EMA89) with a potential towards 1.1312 - H5 resistance.
Below 1.1175 targets are 1.1140 and 1.1095. Expect, volatility spike just before and during FOMC.
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