Greenback Weakens on Fed Minutes – EUR breaks out…

Two days ago, I wonder whether the Fed will pause its hawkish policy after the recent market tantrum.

Investors are worried about the US rates, particularly, the “inversion” of the US yield curve. This means that short-term interest rates are higher than long-term ones. When the yield curve inverts, historically, it signals that a recession is near.

Yesterday, the newly-released Fed minutes showed that the Fed may slowdown its hawkish monetary policy in 2019. This led to a sharp decline in the US Dollar.

Against the EURUSD, a nice breakout emerged at the bottom of its long-term range, at 1.150. This move probably ends Euro’s weakness and set the rate up for a rebound back into the range high at 1.180. Note the ‘failed’ downside breakout at 1.130. Watch to buy on retracements near the range resistance at 1.150.

List of FX Brokers on GoodMoneyGuide.

Good Money Guide Featured Accounts

Looking for institutional broker? Compare prime brokers here