US dollar soars and sends Euro back below 1.0900

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/USD bounced again and made a strong reversal. Price peaked at 1.1010 and then turned to the downside falling to test daily lows. The pair bottomed immediately after the FOMC historic decision at 1.0886 before bouncing to the upside and currently trades at 1.0895, modestly lower for the day, but more than a hundred pips below the level it had an hour ago.

    Greenback gained momentum across the board during the last hour and erased most of the losses against commodity currencies and jumped to daily highs versus European currencies and the yen.

    No particular words of Yellen triggered the USD rally. The FED rose rates for the first time since 2006 and signaled that future rate hikes would be gradual.

    EUR/USD near danger zone

    From approaching an important resistance, the pair is now challenging the 1.0900 area. Below here the immediate support could be seen at 1.0850 and then 1.0800 (May and July lows). To the upside, the key area remains 1.1030 - 1.1060 (100 and 200-day MA).

    What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too.

    For more information, read our latest forex news.

Share This Page

free forex signals