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EUR/USD: Aug lows back in the picture after FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - EUR/USD is licking the wounds on the back of the FOMC overnight that came a hawkish statement advising the conditions that would be appropriate for a December hike.

    Full text October FOMC statement

    The FOMC require maximum employment and need to be more confident that inflation is moving towards the 2% target. This is not far from what we already knew, although this time there was no mention of Global headwinds to the US economy and signifies there may not be any reasons to delay the first rate hike to next year, leaving the door open for a Dec hike. This coupled with a bearish outlook in the EZ and an ECB who are concerned about China and EM's only offers a more bearish case for EUR/USD going forward.

    EUR/USD levels

    EUR/USD is technically looking at the 1.0855 6th Aug lows and 1.0808 19th July low with RSI (14) below the oversold readings at 28 and offers a picture of consolidation for the meantime. While price remains below the 200 DMA, at 1.1110 currently, downward pressures will persist.
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