The FED and the funds rate (Sep 19)

We have been waiting for an increase by 25 BP but Mrs Yelen decided to postpone it for some time in the future. World economy (bla bla bla), China (bla bla bla), no increase in the funds rate. I was reading some bank forecasts and most of them were expecting the no-hike but some of them were certain for the increase. We all observed after the press conference the move against the USD on Thursday and then on Friday most pairs were back to Wednesday’s close. The markets like calm waters and after the stop hunting things were stabilized again.
Most pairs that I observe are between the EMA zone indicating a market equilibrium. I use two emas to measure market strength and direction Ema(200) and Ema(126). The ones that are outside the ema zone created in July and August ranges and they are inside them. As a result it is hard to see trading setups and you will often hear me saying “wait and see”. What I want to see is test and rejection of the borders of the trading ranges. This setup can offer us relatively safe trades.
Next week will start with a 3 day Japanese bank holiday and some Euro and Usd reports during the week. You can see my analysis in the following video.

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