EUR/USD Daily Price Forecast – EUR/USD Breaks Lower as Dollar SoarsThe pair has broken through the support in the 1.15 region and is likely to come under even more pressure
It has all been about the dollar since early morning as the dollar rose against all other instruments and has negated the beliefs and patterns that had pointed to some weakness in the dollar in the coming days and weeks. What we are looking at now is some serious strength in the dollar with some strong support from the Fed, which was quite unexpected as far as the market is concerned. The Fed under the new Chief Powell seems to be doing a good job of speaking its mind and giving some clear messages to the market and it had followed the path that it had laid out for itself at the beginning of the year.
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EURUSD Breaks Support
This helped the dollar to gain some strength over the last few months and just when we were thinking that the bulls were getting tired and that we could see a reversal in the fortunes of the dollar, we are seeing another boost being given to the dollar by the Fed Chief Powell. His speech was scheduled late in the day yesterday and though not much was expected from it and the impact from that was expected to be minimal, it was anything but that. He said that the interest rates were still accommodating and made it very clear that further interest rate hikes could be along the way in the coming months.
This has been enough to send the market into another spree of dollar buying and this has pushed the euro below the 1.15 region as of this writing. We had been mentioning this region as being very important for the euro bulls and if this break holds, it could lead to further dollar buying in the coming weeks which should push the euro towards the 1.12 and below as well. The bears are fully in control of the market at this point of time and once the London session opens, we might see even more pressure from the bears which could push the prices lower during the day.