After yesterday’s message that US government has decided to cut interest rates, there was only one asset that was undoubtedly going to benefit from the subsequent fall of USD. And that asset was euro. Of course, greenback’s European counterpart was going to react to the news, having been just on the receiving end of this decision not so long ago. But while the state of the rates in Europe are still being decided, USD has already felt the impact, And I have to say, judging by EUR/USD chart behavior, this is not going to go away that easy.
I am of course talking about the growth of EUR against USD. It was easy to predict, but the breakout moment came hours after the decision was announced, so catching the outbreak was probably pretty hard. What’s even harder is the fact that sooner or later USD is going to come back to its normal strong state and those who invested into the couple now might feel the fall.
Plus, the fact that EUR/USD has been struggling with moods on the bear side is not really helping us trade. Short term trading is the best solution for those who prefer EUR/USD to other couples.
If the chart is going down soon, be sure to catch the fall with our trading signals.