EURUSD Bulls Needed a Catalyst. Mr. Powell Obliged

EURUSD was trading near 1.1170 at the start of last week. The pair was close to levels last seen two years ago and most expected the slide to continue. But then, on June 4th, Fed Chairman Jerome Powell implied the Central Bank is considering interest rate cuts in response to trade issues. By Friday, June…

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4 Pairs Before and After the Fed Rate Hike

Predicting the Fed rate hike is not the same as predicting the market’s reaction to it The benchmark interest rate of the Federal Reserve is now 1% after the central bank hiked by 25 basis points on Wednesday. And while the Fed rate hike was virtually guaranteed, the Forex market’s reaction to it came as a…

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EURUSD Anticipates, the Fed Follows

EURUSD fell below 1.04 for the first time in 14 years, after the Federal Reserve raised rates by 25 basis points from 0.50% to 0.75% on Wednesday. The Fed’s move was highly anticipated and so was the dollar’s strength after it. But it deserves to be mentioned that EURUSD has been rising from as low…

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No EURUSD Surprises After Yellen

When the market opened on Monday this week, EURUSD was trading in the area of 1.1330, after s significant rally from 1.1045 just two weeks earlier. Most traders have heard that the trend is always more likely to continue. That is true except when it is not, as EURUSD demonstrated. It is now evident that…

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EURUSD to the Target and Beyond

Back in 2015, on December 19th, the majority of market analysts expected EURUSD’s post-ECB gains to be completely erased very soon, especially with the FED having raised interest rates for for the first time since 2006. Instead of going with the flow, we published “Time for EURUSD Bulls to Shine Again?”. The article’s purpose was…

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Time for EURUSD Bulls to Shine Again?

EURUSD rose after the ECB policy announcement on December 3rd, then fell following the FED’s decision to raise the interest rates on December 16th. Should we wait for the next major statement from the US or the European Union? Is it possible to get a clue about where the EURUSD exchange rate is most likely to…

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Gold Ready For A Post-FED Explosion?

The world is waiting. The FED is expected to hike rates for the first time since 2006 this Wednesday in what is thought to be the biggest financial event this year. Well, we cannot predict what the FOMC will decide. Instead, we prefer looking at the charts, because they might just tell us how market participants are…

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EURUSD Triangle Warning Ahead Of FOMC

Triangles are known for preceding the last wave of the larger sequence. In an A-B-C zig-zag pattern, the last wave is wave C. According to the Elliott Wave Principle, once wave C is over, there is a reversal. EURUSD seems to be giving us an example. As it appears, there is a triangle wave B,…

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EURUSD Complicated Ahead Of FOMC

A month ago, on May 18th, we published an article, called “EURUSD To Confirm Bearish Reversal”. EURUSD was trading close to 1.14, when we made that forecast. Those of you, who have been following this pair, know that it fell to 1.0819 on May 27th. However, we were expecting a much deeper decline, which was…

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ECB’s Quantitative Easing (QE) and Velocity

Why ECB quantitative easing program may not achieve the much needed results? If we follow the economic theory, an increase in the money supply should cause inflation and therefore price inflation. But here comes the tricky part. Most economists do not make the difference between these two concepts. Inflation is an increase in the overall money…

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