News & Analysis

Eightcap Forex technical insights – 14/12/17

Dec 14, 2017 | Forex News

This morning the Federal Reserve increased the funds rate to 1.50% as widely expected. The Fed also confirmed 2018 rate outlook as unchanged. This lead to sharp decline in the USD, strong gains have been seen on the EUR, AUD and Gold. The big question atm that only time can answer is, are we seeing a change in sentiment for the USD or a short term bleep?

USD Index – daily, we can see that the main up-trend broke in November. Price retested support and rallied  till sellers kicked into it this morning post Fed. This mornings turning point lines up with 94.00 resistance. Has this mornings break of trend confirmed a new down trend, or at least a move to retest 92.50 area support? For now we feel sentiment may have changed for the USD.

EURUSD – daily, we have been watching 1.1717 support this mornings funds rate drove buyers to action after the E/$ gave up a stronger start to yesterday, which looked like reconfirming that level. We have a trend break from support. If the USD sentiment continues to stay bearish we could see buyers retest 1.1879 level.

GOLD – daily, buyers confirmed Tuesday’s low this morning. After 3-weeks of lower prices we saw support found from 1236 . Price tested lower before the FED sealed the fate for the USD and sparked gold buyers into action breaking it’s down-trend. As with the EURO we’ll be watching USD sentiment with interest to see if it’s shifted. Gold has it’s first hurdle above at 1260.60.

Good trading from Eightcap

Sources – Investing.com

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