Forex Blog

EUR/USD reached its one month minimum level today during a fast dollar rally that has been influenced strongly by the yesterday’s FOMC statements. Is it a bull trend break, or just a small correction before the new heights? The answer will lie in the next 2 weeks - the next one can be ranging, while the second - bearish, which will show Forex traders a new medium term trend for EUR/USD, bullish weeks will probably return EUR/USD back to bulls.

After retreating back down to under 1.3550 yesterday, EUR/USD is now slightly ranging while waiting for the FOMC statement (today, 19:15 GMT) - one of the most important and anticipated fundamental events in the Forex trading community. There is almost no doubt that the interest rates will be left intact (5.25% currently). But there are many speculations about what FOMC will say about U.S. economics, inflation expectations and its regulatory policy. Strong positive expectations from FOMC can empower USD for the new bullish trend, while weak or unsure statements made by FOMC may be used by the EUR bulls for the new EUR/USD long positions.