The Fed did not surprise the markets, which means that traders returned to the dominant trend that has been with us for the past few months, at least on USD. EURUSD cancelled the buy signal that was triggered here on Wednesday and opened a new direction – south. Instead of the iH&S pattern, we got a flag (green) and a comeback below the downwards trend line. Sentiment is negative and we should see a slide towards 1.13.
EURCHF is also going lower. Buyers wasted a chance for a breakout of the neckline. Instead of the inverse head and shoulders, we received a flag and a downwards breakout. The situation here is very similar to the one described above.
Our last instrument of the week is DAX, where we also see a decline. In this case, we also have a failed iH&S pattern. The price did not manage to break the neckline and went down. To be honest, even with the breakout it would be hard to predict a future rise. Sentiment here will remain bearish as long as we stay below the blue line.