Global macro overview for 16/06/2016:
The Federal Reserve Bank (Fed) decided to keep the interest rate unchanged at the level of 0.50% and the FOMC statement brought no surprises on Wednesday. The economic projections were lower than in January and the dot-plot showed that only one Fed member is forecasting 1 rate hike in 2016 and none in 2017. Fed Chairperson Janet Yellen mentioned in the statement that he improvement in the labor market slowed, but was offset partially by growing economic activity: the consumer spending increased, but on the other hand the business investment decreased. This bag of mixed results is nothing new in the recent economic releases from the USA. So the Fed policymakers are now again cautious and data-dependent. In conclusion, the Fed expressed the willingness to act if the economic conditions improve enough to justify the interest rate decision.
Let's now take a look at the EUR/USD technical picture after the interest rate decision. Since December last year, the market has been moving inside the golden channel. Besides, higher highs together with higher lows have been made. This means bulls are still in control over this market. If the 61%Fibo at the level of 1.1415 will be violated, then the test of the recent high at the level of 1.1615 is highly possible.