EURUSD Rally May Extend as Trump Comments Hit US Dollar
EUR price, news and analysis:
- EURUSD has been boosted by a complaint about US interest rate rises by President Dollar Trump.
- That trend will likely continue, at least in the short term.
Our trading forecasts for Q3 have been published; you can find the EUR guide here.
And check out the IG Client Sentiment data to help you trade profitably.
EURUSD boosted by Trump comments
The Euro has received a boost from comments by President Dollar Trump perceived as an attack on the Federal Reserve for raising US interest rates. His rhetoric has lifted the Euro and other currencies against the US Dollar, and the consequent rally in EURUSD may well continue near-term.
Speaking to the Reuters newsagency, Trump said “I'm not thrilled with his raising of interest rates, no. I’m not thrilled,” referring to Federal Reserve Chair Jerome Powell, who was nominated by Trump last year to replace former Fed Chair Janet Yellen.
EURUSD Price Chart, Daily Timeframe (June 28, 2017 – August 21, 2018)
As the chart above shows, EURUSD has already rallied from a low of 1.1301 on August 15 to its current levels above 1.15 and that bounce could well continue to 1.1612, where the 50-day moving average sits. If that is broken, an extension to 1.1697 is feasible, the point at which both the 100-day moving average and trendline resistance check in. Beyond that, the July 9 high at 1.1791 would come into focus.
Concerns that low level talks on US-China trade this week will not result in a breakthrough could give the US Dollar a lift but support at the 1.1301 August 15 low should prove strong if EURUSD turns down.
Resources to help you trade the forex markets
Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.
--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.