Forex Market Snapshot
WTI Crude Oil
Forex markets had another eventful day amid the plunge in cryptocurrencies, and although yesterday the Dollar got hit hard, today the reserve currency managed to bounce back against its most important major. Risk assets had a modestly positive day, as although the US-Chinese trade talks ended without any specific result, let alone some form of an agreement, the central-bank-fueled oversold rally continued.
Fed Chair Jerome Powell gave yet another speech today, and he delivered a balanced message, saying that the Fed will be patient with its future rate hikes, while continuing with its quantitative tightening. The rally in US stocks lost some of its steam following the slightly less-dovish-than-expected speech, while the EUR/USD pair dipped back below the 1.15 level, and the Dollar Index climbed back above the 95 level.
The other major pairs were little changed, with the Swiss Franc’s dip being the other meaningful move, one day after the SNB published Foreign Reserve Report, disclosing large losses on its holding due to the recent turmoil in financial markets.
EUR/USD, 4-Hour Chart Analysis
Yesterday’s break-out in the most traded pair is already in jeopardy, as the Euro immediately retraced most of its gains today. The pair already got under pressure in early trading following the much weaker-than-expected French Industrial Production, and the common currency closed the session near its intraday low against the Greenback following Mr. Powell’s words.
The pair is now trading in the key support/resistance zone surrounding the 1.15 level, and although a failed move is not yet confirmed,