Forex Marketz Daily Forex News – Fully Markets Update
The euro currency is sinking like a stone in the water against the U.S. dollar. The headline EUR/USD currency exchange rate has set a new monthly low price point and is below the key technical level of 1.20.
The euro has been falling sharply since the Federal Reserve Board announced their monetary policy and interest rate decision. As expected, the Federal Open Market Committee (FOMC) left interest rates, monetary policy and their monthly asset purchase program as is for June.
The U.S. central bank said there could be two 0.25 point rate hikes in 2023. The Federal Open Market Committee economic projections show higher inflation is on the horizon and more of their monetary policy members are willing to make a policy move sooner rather than later.
This broadly supported the U.S. dollar as Treasury yields rose. The benchmark ten year note yield has spiked to 1.49 percent. What is next for the Federal Reserve? The Federal Open Market Committee could announce by August that tapering is approaching.
Long-term interest rates will now inch higher as financial market participants expect the U.S. central bank to ease back on monthly asset purchases.
Today, the euro area is publishing their final monthly consumer price index (CPI). Italy will release monthly trade balance data. The Philadelphia Federal Reserve will release their monthly manufacturing index.
The U.S. Labor Department will publish weekly initial and continuing jobless claims and the Consumer Board (CB) will publish their monthly leading index.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD daily MT 4 price action chart, price has fallen below the 55 day simple moving average. Both the one hundred and two hundred (100, 200) daily simple moving averages are listless.
The support at 1.20 has been broken and sellers seem to be in control. Right now the EUR/USD Forex market is challenging the 200 day simple moving average at 1.1990.
On the upside, the first layer of technical resistance lines up at 1.2035. However, a daily close above 1.22 is needed to negate the bearish bias in this Forex market.
