Fed's Rate Hikes May Continue: 11 Institutions Expect an Additional 50 Basis Point Increase

The news creates a strong expectation that the Fed may continue raising interest rates, which is a positive catalyst for the DXY. Technical indicators also support this view: the price is above the SMA20 and SMA50, the RSI at 62 has not approached overbought territory, and although the MACD is just below the signal line, it remains in positive territory. The 24-hour change of 0.57% indicates that upward momentum is continuing. In the short term (1-3 days), the dollar index is likely to continue its upward movement, but if the RSI approaches 70, a limited correction may occur. Overall, the news and technical outlook point in the same direction.

The news creates a strong expectation that the Fed may continue raising interest rates, which puts downward pressure on EURUSD. Technical indicators are already weak: RSI at 36.6 is near oversold territory but no reversal signal yet, MACD is negative and below the signal line. Price is trading below SMA20 and SMA50, confirming the short-term bearish trend. The 24-hour change is negative and with the news, a continued move in favor of the dollar can be expected. However, the low RSI level increases the risk of a limited rebound, so confidence is limited at 0.65.

Expectations of a Fed rate hike could create upward pressure on USDTRY. However, the latest close at 48.6751 is just above the 20- and 50-day moving averages, RSI at 57.7 is not in overbought territory, and MACD is slightly above its signal line. This technical picture suggests that the impact of the news may be limited and the 48.60-48.70 band could act as support. In the 1-3 day horizon, the probability of an upward move is higher, but a 50 basis point hike may already be priced in. Nevertheless, for a sustained rise in the pair, the 48.80 resistance needs to be broken.