Fed remains hawkish, EURUSD slipped off.
“Fed remains hawkish, confounding market expectation for interest rates to peak anytime soon.”
Bullish tractions were observed upon the greenback as Federal Reserve may hike interest rates further, well above what the market has expected previously. Yesterday, the Fed raised interest rates by 75 basis points, citing concerns over rise in inflation which remains “sticky” due to supply chain issue. Latest hawkishness from the Fed dashed off bears, providing a leeway for bulls to re-take their reign.
Quick recap on EURUSD
The pair slipped off from previous rebound, limited by strong selling pressure from the upside.
EURUSD Weekly Technical Analysis
From weekly perspective, long-term trend is still skewed towards the downside as any recovery as of recent remains unfruitful.
EURUSD Daily Technical Analysis
From daily perspective, the pair thrust below the current upward channel, indicating the start of bearish takeover. Nonetheless, nearest support remains as a stronghold for bears as previous breakout were short-lived.
Trading Idea
ORDER: BUY LIMIT
ENTRY: 0.9660
STOP LOSS: 0.9530
Target 1: 0.9935
Target 2: 1.0095
ZFX Analyst’s Comment
While the pair may succumb to short-term weakness, we expect bulls to takeover due to inadequate momentum from previous similar move.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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