[EUR] After FOMC 2019 0919

EUR/USD four-hour chart, source:FXDD.com

cf. [EUR] Still Short Bias? 2019 0916
cf. [EUR] ECB and Fed  2019 0910

FOMC meeting result was not different with market's expectation. Federal Reserve cut Federal Funds Rate 25bp, or 0.25 percent to 1.75~2.00 percent on Wednesday.

The cut of benchmark interest rate usually lowers its currency price. And possible US dollar and dollar index's fall is not abnormal. But market moved dollar long because Fed didn't hint at the additional cut. It seems to freeze the interest rate till next year, but some members want more rate cut in the year.

Market analysts think Fed will freeze the benchmark interest rate and looks global economy positively. No more interest rate cut in the year may still lead strong greenback, market wants more dovish action of Fed.

And the indicate about Germany, German ZEW Economic Sentiment was -22.5. But the expectation was -38.0 and improved index led euro to rise.

The downward trend line in eur/usd daily chart and four-hour chart is still valid, and it support long dollar and short euro with Fed's statement.

In short term, currency pair eur/usd can rise till the trend line or upper band of Bollinger Bands, 1.1061~1.1070.

The Short position of micro Euro-FX or M6EZ19 which I have held, was liquidated on Tuesday, because euro rose. Whether it was closed with profit or loss, it meant that my short bias was wrong in short term.







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