EUR/USD falls to low support on the Fed dot-plot

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The Fed always has excuses for low inflation in the present and foresees higher inflation in the future. The markets currently buy the optimism and send the dollar higher.

The optimism is reflected in the upbeat dot-plot: Yellen and co. are still set to raise rates in December and three more times in 2018. However, they did lower the long-term forecast to 2.8% from 3% last time.

EUR/USD crashes from 1.20 to support at 1.1910. Further support awaits at 1.1870. Update: the pair continues lower, hitting a low of 1.1892. The pair reaches a low of 1.1885 but bounces to 1.19.

Further support awaits only at 1.1712. To the upside, we see 1.21.

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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 the 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.

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