Hello forex traders.
As we past the mid week mark, I would like to provide some updates on the current market situation.
We noted earlier that the USD strengthened slightly after the expected hike in interest rate. This drove the EUR/USD down south.
Loose Bullish Trend Line
Looking at the EUR/USD hourly chart above, we see a resurgence of the euro currency. The currency pair has generally maintained a loose bullish trend line. From a technical momentum point of view, we should expect stronger resistance near 1.15.
Yield Curve Inversion
There is talk among investors of apprehension. A rise in short term interest rates is happening while long term yields are falling. This sparked concerns of a yield curve inversion which may signal an upcoming recession. This is weighing down on the US dollar.
Later in the week, the US is due to release Core Durable Goods Orders and Final GDP. Prudence is critical as there is always a risk of unexpected developments.