Market outlook ahead of FOMC rate decision Oct 29 2014 !

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The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) statement is the primary tool the panel uses to communicate with investors about monetary policy, It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the nearest future.

The FOMC announcement will be today at  18:00 GMT .  They are  expected to leave policy rates unchanged-with fed funds at range of zero to 0.25 percent,  there was some talk about a minority expand quantitative easing , this could lead for a change in plans to end the bond-buying programs ,If seen , this can be a real problem.

However , wherever FOMC outcomes , I think we have 2 options form market tonight ?!!!

1-  The USD will slide a little bit then It will consolidate for a while before the next rise..

2- The USD will slide a little bit , then It will make strong rise ?!!

The 4 hour chart of USDINDEX shows that the pair is under massive pressure , and further decline couldn’t be ruled out , while the daily chart shows that the market is near support level at 85.30 , so volatility is expected around this range .

Recommendations : Buy EURUSD & GBPUSD for limited target , as I said before , the EURUSD is likely to rise towards the 1.2800 levels then it will  consolidate for a while before the next fall, or It will spike towards or beyond 1.2800 levels , then It will decline suddenly and quickly towards 1.2700/1.2600 levels..