EUR/USD jumps amid Trump remarks on rates

The Euro is trading positive on Friday as forex investors are selling the US Dollar following US president Trump comments on interest rates hikes. The Pair is trading firm above the 1.1700 area.

The US Dollar is trading under pressure as Us president Donald Trump criticized the Federal Reserve and its policy on hiking interest rates. “I’m not thrilled,” talking about interest rates hikes. “Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. However, at the same time, I’m letting them do what they feel is best.”

The Dollar index is extending its rejection at 95.65 started on Thursday and it is trading 0.54% down on Friday. A mix of profit taking and Trump verbal intervention have knocked the Greenback down. The 50-day moving average is supporting the index for now.

The EUR/USD is currently trading 0.68% positive on the day at 1.1718 as investors are taking profits on the last day of the week and also selling the dollar on Trump remarks. The pair is extending its bounce from July’s low at 1.1575 performed yesterday and after breaking up 20 and 50-day moving averages, the pair is ready to consolidate levels above the 1.1700 area.

In the 4-hour chart, the EUR/USD is showing signs of exhaustion with the 50-period moving average crossing below the 200-period MA and the 20-period MA signaling now to the downside. The cross is trading in consolidation mode now and the 1.1677 area is the critical support at this moment.

On the bigger picture, MACD is pointing to the north while the RSI is confirming the momentum in the daily chart. Moving averages are mixed and the chart suggest some consolidation yet to the downside, but a potential reversal in the case the cross breaks the 1.1800.

To the upside, the pair needs to consolidate levels above the 50-day moving average to confirm some upside potential. Above that, next resistances are at 1.1750, 1.1800 and 1.1850.

To the downside, the pair needs to get back below the 20-day moving average to fade the upside reaction. Then, supports will be at 1.1580, 1.1530 and 1.1480.

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