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Technical analysis

After Rallying Higher EURUSD Declines to 1.1445

OctaFx | Dec. 21, 2018
After Rallying Higher EURUSD Declines to 1.1445

December 21, OctaFX – The US Federal Reserve increased interest rates by a quarter-point this week but lowered its projections for future US rate increases.

The twenty-five basis point increase brings the US rate of interest to 2.50 per cent, marking the fourth rate increase by FOMC policy makers this year. The central bank lowered its projections to two rate increase next year, instead of the three rate increases previously forecasted.

The initial market reaction saw the US dollar index strengthen, US bond-yields tumble and global equity markets drop, as traders feared that the rate increase might hurt the United States economy and global growth.

EURUSD Technical Outlook

The EURUSD pair declined during the Asian session to a low of 1.1445. This decline came after the sharp rise seen yesterday. This price is along the 14-day moving average but lower than the 28-day EMA.

The Average Directional Index has fallen from above 53 to the current 18 while the MACD is falling. Today, the movement of the pair will likely depend on US politics and the final reading of the third quarter GDP.

Disclaimer

This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.