US Dollar, EUR/USD Talking Points:
- Yesterday brought the fourth rate hike this year out of the Federal Reserve, and the market response across equities was not positive as the S&P 500[1] moved down to a fresh 2018 low while the Dow Jones Industrial Average[2] pushed down for a support test at the February swing. Moves in currencies were a bit less-pronounced, as the US Dollar’s initial push of strength was strongly faded-out of markets starting around the open of trade in Asia.
- EUR/USD[3] is trading at six-week-highs after that USD-weakness came online; and the pair is putting in a test at a key resistance zone on the chart that’s been in-play for much of Q4. As discussed yesterday morning and perhaps lost in the shuffle with all of the excitement around the Fed, the détente between the EC and Italy can keep the door open for further Euro[4] strength as a primary risk factor around the currency and economy gets priced-out of the equation. The big level to watch in EUR/USD appears to be around the top-side of that zone at 1.1500.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or the Euro[6] are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[10]
