Following the Fed’s decision to keep interest rates in the same range, the Dollar continued its downward trend, reaching the area of recent lows against the Euro. Despite the important statements made by the Federal Reserve, the Forex market has not shown high volatility.
Next we will be reviewing the Dollar Index chart, this being the best reference to identify the price trend, against the main world currencies, such as Euro, Japanese Yen, Pound Sterling, Canadian Dollar, Swedish Kroner and Swiss Franc.
At the end of the publication we also reviewed the current status of Bitcoin pricing, so it’s worth reading this article in its entirety.
Forex Market: FED left interest rate unchanged at >0.25%
US Dollar trend analysis
The weekly candlestick chart of the Dollar index clearly shows the strong weakness of the currency.
After the 98.5 point support break, the medium term trend turned bearish, generating the crossing of the 8 week EMA and 18 week SMA.
Currently the price of the USD is reaching a very relevant support zone. It was there that the revaluation began with the first major impact of the Coronavirus effect.
The 200-week SMA is being reached, which also converges with the named area. This moving stocking could function as a dynamic support, initiating a reversal. However, there is still no sign that this will happen in the short term.
In the daily time frame, history repeats Ethereum Code itself. The bearish force is totally dominant, so it is very likely that we will see the price of the Dollar visit recent lows, against other currencies in the Forex market.
The EMA of 8 and SMA of 18 have been following the USD in its continued decline, one that has had no valid setback since it began on May 26.
The 200-day SMA was also broken down the same day that support at 98.5 was breached.
The Dollar will remain weak in the short term in Forex
And with the timing of the move lower on the 4-hour candlestick chart, the outlook remains the same. Continuously decreasing highs, followed by EMA of 8 and SMA of 18 crossed downwards, and SMA of 200 upwards.