As you all may well know, the Feds decided to hike the federal funds rate yesterday (the second rate hike this year) by 25 basis-points, citing a strengthening labor market. This comes as no surprise to investors since the Feds forecast 3 rate hikes this year. One unintended consequence is renewed hope that the USD will regain back some of its losses from last year. And frankly, the dollar could use all the good news it can get, after the much anticipated Trump-Kim summit essentially amounted to nothing for the U.S.
Technically, Euro bears/Dollar bulls successfully hit the 1.1600 mark, which was followed by expected support from Euro bulls/dollar bears. From there, buyers managed to create some bullish momentum which has slowed in the past few days. The pair is hanging around a 0.618 (1.1800) relative retracement level, which is interesting. It may seem that they (Euro bulls/dollar bears) may have their sights set on 1.2000 as they look to regain back their losses from the recent 40-day bearish run.
I will await a reaction to the current 1.1800 level to determine my next move. A real confirmation of a resumption to the downside is a daily close well below the 1.1600 level.
Trade with care!
Technically, Euro bears/Dollar bulls successfully hit the 1.1600 mark, which was followed by expected support from Euro bulls/dollar bears. From there, buyers managed to create some bullish momentum which has slowed in the past few days. The pair is hanging around a 0.618 (1.1800) relative retracement level, which is interesting. It may seem that they (Euro bulls/dollar bears) may have their sights set on 1.2000 as they look to regain back their losses from the recent 40-day bearish run.
I will await a reaction to the current 1.1800 level to determine my next move. A real confirmation of a resumption to the downside is a daily close well below the 1.1600 level.
Trade with care!