The Fed hiked interest rates as expected and also lifted expectations for 2017 from two to three rate hikes. While Janet Yellen downplays this change, the US dollar remains in high demand.
This results in a big fall in EUR/USD. The pair has reached a low of 1.0533, with the 1.0520 level getting closer. The pair did dip under 1.0520 level, the December 2015 low, after the Italian Referendum. However, that was just a temporary blip.
Does it have the momentum to make the break and attack 1.0460, the March 2015 low? Or does Yellen’s caution limit any moves?
Here is the EUR/USD chart:
(Click on image to enlarge)
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