On June 16, the US Federal Reserve published the Federal Open Market Committee’s Statement, Economic Projections and Federal Funds Rate. The main news that the markets reacted to was the revelation in the Economic Projections that the central bank could hike interest rates in 2023, as it expects an end to the coronavirus and growth of inflation.
The surge caused by the central bank reached the 110.80 level. The 110.80 caused a consolidation, as the rate began to trade sideways between the 110.80 and 110.60 levels.
In the near term future, if the rate surges, it could find resistance in the 111.00 mark. The rate bounced off the 111.00 level during its early April surge.
On the other hand, if the rate declines, it would look for support in the cluster of levels near 110.20. Namely, the weekly R2 simple pivot point at 110.23, the 55-hour simple moving average and the 110.20 mark could provide support.
