- The euro dipped again against the US dollar during Tuesday’s trading, as the US dollar kept gaining ground.
- This market, as of now, is slightly below the significant 50-day EMA.
- By the close, I think there’s still quite a bit of support around the 1.1550 mark.
If we fall below that level, it’s possible the market could drop to around 1.14, which has strong support, with the 200-day EMA providing additional stability. It’s interesting to note that the FOMC interest rate decision seemed to be the peak, which I think surprised many. When the market acts unexpectedly, it’s crucial to focus on reality rather than assumptions about what should happen.
Funds flowing into bonds
Money is indeed starting to flow into US bonds, contributing to a stronger dollar. It’s quite evident that foreign investors are beginning to purchase again. This would mean traders need to buy USD to facilitate trades.
Christopher Lewis has over 20 years of experience trading foreign exchange. He has contributed regularly to the Daily Forex site and writes about forex for various online platforms, including FX Empire and Investing.com. With a preference for long-term trading—where his trades can last days or even weeks—Chris also enjoys technical analysis and trades stock indices and commodities.
