- EUR/USD bears back in control.
- EUR/USD below 10 and 21-D SMAs.
EUR/USD has turned south again since the initial post FOMC minutes spike to 1.2360 where markets perceived the FOMC split on whether the inflation target will definitely be achieved.
FOMC Minutes: officials saw an appreciable risk of inflation lag to target
However, considering the meeting was before the recent run of further inflationary outcomes in the economy, there was a big turnaround in yields and the dollar. Currently, EUR/USD is trading at 1.2283, down -0.05% on the day, having posted a daily high at 1.2300 and low at 1.2283.
EUR/USD turns around and eyes levels towards 2017-2018 uptrend at 1.2044
EUR/USD opened near 1.2340 in NY and traders sat on their hands awaiting the FOMC minutes for the most part. However, the dollar had been creeping higher with eyes on the 90 handle, that was subsequently achieved in the big turn-around post FOMC minutes event. EUR/USD was around 1.2360 before dropping back to below the 1.23 handle and meeting the aforementioned lows.
EUR/USD levels
Bulls have well and truly lost sight of the 2008- 2018 key target at 1.2680 on the wide and the price now looks committed to the downside on this break of 1.2300 below the 21 and 10-D SMAs. On the wide, the January 18 low at 1.2165 would be next in focus head of the 2017-2018 uptrend at 1.2044.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.