EUR/USD breaks 1.23 handle and eyes are set on deeper target

EUR/USD bears back in control.
EUR/USD below 10 and 21-D SMAs.

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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