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Fed helps EUR/USD face a less certain future

The dovish Fed hold last night helped to ensure the EUR/USD once again rejected a potentially negative close underneath its 200 day moving average (still at 1.0840), despite briefly dipping below that level again yesterday. The fact that it did not break below the previous low was noted here earlier in the day and subsequent recovery, back above 1.09 has further negated that risk. The EUR/USD took full advantage of the dovish Fed and dollar weakness yesterday evening. The EUR/USD actually closed on its best levels of the day, at 1.0922. It has stretched that gain slightly this morning, reaching a high at 1.0940 so far. In the process of that, it has lifted further above an interim downside trend line that might have offered some resistance. Well, it has not. The next resistance levels in place this morning are at 1.0955 and then at 1.0964, from previous daily highs set last week. The EUR/USD is currently trading at 1.0939 

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