FX.co ★ Global macro overview for 30/03/2016

Global macro overview for 30/03/2016:

Yesterday, the Fed Chairperson Jannet Yellen supported a rather cautious approach to the current policy and stressed gradual rate hike. This dovish statement was caused by global economic situation and financial uncertainties that might threaten the world's largest economy. Moreover, Yellen said inflation has not yet proven to be durable against the backdrop of stubbornly low oil prices and concerns over China. In conclusion, the global threats must first disappear or be reduced significantly before the data-depended Fed will hike the rates again.

Let's now take a look at the US Dollar index technical picture at the H4 time frame. The recent dovish remarks made by Yellen have caused a sell-off in the index, and bears are back to control over this market. The next support is seen at the level of 94.57, but it might get easily violated.