The Fed Effect

Today’s announcement from the Fed my have left a number of folks scratching their heads. As expected, the fed funds rate remained at 5.25% for the third straight meeting. But the statement accompanying the announcement gave little evidence as to which way the governors may be leaning. The end result was a spike in the EUR/USD which was not able to penetrate resistance. Those following the Institutional Forex System were able to book a maximum profit trade.

It appears that the pair is respecting resistance at the 1.2620 area. Next we’ll watch for a test of the fib retracement at 1.2570 and the July low of 1.2457.