EUR/USD – The Pair Price Continue to Fall Resulting in a Sell Off After Fed Minutes

Short Position

Take Profit: 1.0500
Stop Loss: 1.0656
Timeline: 1-2 days

Long Position

Buy stop: 1.0627
Take Profit: 1.0690
Stop Loss: 1.0500

Looking at the charts for technical analysis, it is quite clear that the pair has moved below the 50-period Moving Average and Ichimoku cloud. The pair was experiencing a strong downtrend for the last few days and the trend was boosted after the Fed minute release which resulted in the price moving beneath the key support at 1.0615. The pair is also awaiting some important data releases like Eurozone CPI and US GDP. The latter won’t have much impact on the price based on the economic forecast that suggests an expansion for the US economy.

ECB is likely to tighten its monetary policy concerning rate hikes as Fed minutes have given a confirmation for the upcoming rate hike for the US. The promising numbers in the US economic data had already strengthened the USD and the upcoming rate hike added more fuel to it. The US inflation is falling at a slow pace but it will surely take some time to reach the 2% target rate. Considering all these factors, the EUR/USD pair has more opportunities for going short at the moment with the strong sell off.

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