FOMC minutes release is one of the high impact events of economic calendar with direct impact to Dollar and Stocks. In recent minutes released, FED maintained its stance to reach 2% Inflation target with high Employment Rate and other strong economic indicators in the US. There were no changes made to the FED Fund Rates or else REPO rates (that are running below the target at present). There was an indication of further rate hikes during the year (2017) though. There was brief mention to FED Balance Sheet. However little was said on any measures to reduce it, as FED's assets stand at high levels. The later point was something market had expected to be discussed.
U.S. President Trump economics and policy decisions will play an important role in how the markets perform and economy stabilizes. This thereby remains a key influencer (albeit not directly specified) for FED interest rate decisions during coming months.
Dollar Index, that has been trading above 100 post election in November 2016, continues to retain its strength. As an immediate reaction to the FOMC minutes release yesterday, DXY, the Dollar Index dropped. Short-term double top formation on the Daily Chart, with bearish pressure intact. Head and Shoulder pattern formation in progress with Right Shoulder completion to the neckline possible, (from current 101.285 to below 99 levels).
On 4-Hour Chart, Intra-day trade can be opened as follows:
Trade Type: Short at Current Level
Take Profit: 99.879
Stop Loss: 101.688 or else below
Near-term and Mid-term Support and Resistance levels aligning with recent highs and lows are indicated in the charts.