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EUR/USD approaches low support on FED hike – will it

The FED hiked interest rates as expected and also lifted expectations for 2017 from two to three rate hikes. While Janet Yellen downplays this change, the US dollar remains in high demand. This results in

This results in a big fall in EUR/USD. The pair has reached a low of 1.0533, with the 1.0520 level getting closer. The pair did dip under 1.0520 level, the December 2015 low, after the Italian Referendum.  However, that was just a temporary blip.

Update: EUR/USD fell all the way to 1.0497, well under support and also below the round level of 1.05. However,  high volatility continues and  trading is not one-sided.

Does it have the momentum to make the break and attack 1.0460, the March 2015 low? Or does Yellen’s caution limit any moves?

Update: as the press conference ends, EUR/USD stabilizes around 1.0540. Perhaps we will see further moves when Tokyo opens and a full response in the upcoming  London session.

More:  Can EUR/USD Do It 9 Times In A Row On FOMC day? – Deutsche Bank

Here is the EUR/USD chart. Resistance awaits at 1.0660 and 1.0710, but the trend remains to the downside.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.