The "historical" highly touted FOMC Minutes release of December 2015 is over. The FED decided to raise the Fed Funds rate 1/4 point. As the stock market climbed a higher on the news in what is to be considered a "relief rally", everyone who was waiting for the trade of the year promptly fell asleep. The currency markets hardly budged. It appears the rate increase was already factored in by SMART MONEY. We expect the following:
Eur Usd-to continue to lure the shorts back in on down moves (as they hope for the big move to parity) and then we expect a rangy back and forth move higher. Our short term target is 1.1074
Usd Cad-Usd Cad continues to grind higher into historical highs on positive US dollar news and a falling crude oil price. We believe the pair is setting up for a major reversal. This looks like a 5 wave Elliot Wave impulsive structure.
What we see is a coming reversal of Usd Cad, as Eur Usd and Gbp Usd start to move up in a rangy fashion. This should be accompanied by a short term rise in Crude Oil prices and negative USD news.