Today we
had the Federal Reserve’s announcement out of the US, where the central bank
has raised its interest rates by 25 basis points as expected. The Euro versus
the Dollar became very volatile after the announcement and tried to break below
the 1.0900 and above the 1.1000 level, but then it settled around the 1.0900
level again. On the daily chart we can see that the 55 day exponential moving
average (purple line) is around the 1.0900 level and continues acting as a good
support. The direction of the pair now depends on the future fundamentals from
the United States and the Eurozone. In order for the pair to break below the
1.0900 level, the US fundamentals must come out a lot better than expected and
in order for it to break above the 1.1000 level, the Eurozone fundamentals must
also come out a lot better than expected.
Good point. I'll keep a close eye on it.
ReplyDeleteYesterday's fundamentals pushed the pair down and the move to the downside will continue at least until it reaches 1.0875, I think.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteExcellent analysis, thanks for sharing!
ReplyDeleteExcellent analysis.
ReplyDeleteThe pair stayed in the range.
ReplyDeleteInformative post, thank you.
ReplyDelete