Market Analysis

US Dollar Strengthens Amid FOMC Minutes, EUR/USD Faces Potential Declines

Dupoin · 17 Oct 202422.9K Views

EURUSD

Prediction: Decline

Fundamental Analysis:

The recent strength in the US dollar has been supported by the release of the Federal Open Market Committee (FOMC) minutes from the September 18 meeting. While many policymakers were in favor of a 50-basis-point rate cut to loosen monetary policy, no clear timeline for future cuts was set. Hawkish comments from Federal Reserve officials have also contributed to the dollar’s rise. Although a 25-basis-point rate cut is widely anticipated for next month, some, including FOMC Governor Michelle Bowman and Atlanta Fed President Raphael Bostic, have indicated that the Fed may opt to hold off on any cuts in November.

Technical Analysis:

EUR/USD is facing the potential for further declines, with the October low of $1.0862 (October 16) being the first downside target, followed by $1.0800 and the August low of $1.0777 (August 1). On the upside, resistance is found near the 100-day and 55-day simple moving averages (SMAs) at $1.0935 and $1.1040, respectively. Beyond that, the key resistance levels are the 2024 high of $1.1214 (September 25) and the 2023 high of $1.1275 (July 18). A decisive move below the 200-day SMA at $1.0872 could reinforce a bearish outlook. Initial support sits at $1.0862, with resistance at $1.0943 and $1.0996. The RSI near 30 indicates ongoing downward momentum.

Disclaimer

Derivative investments involve significant risks and may result in the loss of the capital you invest. You are advised to carefully read and study the legality of the company, products, and trading rules before deciding to invest your money. Be responsible and accountable in your trading.

RISK WARNING IN TRADING

Transactions via margin involve products that use leverage mechanisms, carry high risks, and are certainly not suitable for all investors. THERE IS NO GUARANTEE OF PROFIT on your investment, so be wary of those who guarantee profits in trading. You are advised not to use funds if you are not prepared to incur losses. Before deciding to trade, ensure that you understand the risks involved and also consider your experience.