Good day forex traders.
Welcome to our weekly review of the popular currency pair. How was your forex performance for the week? Hope it was great.
The EUR/USD has in recent months been rather undecided. There was no sustained trends as both sides of the Atlantic charted their own path ahead.
There will not be a sustained bullish momentum unless we see a clean breach of the 1.12 region. Immediate support remains at the region of 1.1.
The US Federal Reserve raised the interest rate for the second time this year. BBC reports ”
The central bank voted to raise its key rate target to a range of 1% to 1.25%.
That’s the highest level since 2008, when policymakers cut rates to encourage borrowing and spending after the financial crisis.
The bank also said it would begin cutting its bond holdings and other securities this year.
It cited continued US economic growth and job market strength as reasons for raising its benchmark interest rate.
“Our decision … reflects the progress the economy has made and is expected to make,” said Federal Reserve Chair Janet Yellen. ”
Many analysts believe that the interest rate hike was already priced into the markets. Regardless, this will likely provide some bearish pressure on the EUR/USD as traders acquire more US dollars.
We need to continue monitoring economic developments so as to chart our way forward. Do drop down to the shorter timeframes if required to ascertain the immediate price movement. Trade safely.