EUR/USD is the most popular currency pair in the world. It is used to represent the two largest economies in the world. The Euro was established to facilitate cross-border trade of European trading partners.
Since its foundation in 1999, the pair has and is continuing to face considerable volatility. Similarly, the world has also faced several events of volatility among them the tech boom which eventually became the tech bust, the real estate bubble not forgetting the European Debt Crisis which is still in search for a long-term remedy.
Just like it was predicted, the US Federal Reserve kept rates unchanged. However, the rising headwinds were acknowledged following the the global economic and financial developments monitoring. In addition, the job markets got improved and the economy is expected to thrive as the year goes by.
The EUR/USD pair trades in a pretty packed range capped by 1.1365, 50% retrenchment of the latest daily slide following ECB QE announcement. The US Federal Reserve is expected to release a statement of its first 2015 meeting.
For the last two days, the pair has been trading within Fibonacci levels with 38.2% retrenchment of the above mentioned rally offering support at 1.1305, and the 61.8% at 1.1440, probable bullish target in the case of a major disappointment.
Although the EUR/USD currency pair is now attempting to rebound, it has been trading below its initial levels. One of the major reasons why the dollar gained against the euro was after the Brussels explosion. This led to a risk-averse sentiment on the Forex market.
The EUR/USD pair traded is high as 1.0911 but after the crude oil surged it faded. After the FED’s dovish announcement, the item rejuvenated thereby helping the EUR/USD shoot up to 1.0912. However, the selling interest has retained rallies between 1.0920 and 1.0960 since the beginning of the year. As such, the pair needs to steadily advance beyond it so as to provide a more constructive outlook.