At the start of the week in the Tokyo market, the euro went up to 1.1770 after news that the U.S. and EU had agreed on a 15% tariff. However, once the European market opened, the euro started to fall.
Even though the trade war was avoided, the euro fell more than expected. This may be because the details of the agreement are still not clear. Also, the EU promised to invest $750 billion in the U.S., which may have caused people to buy U.S. dollars instead.
Some traders may also be adjusting their positions before the important FOMC meeting tomorrow.
If the U.S. central bank shows that it wants to lower interest rates at the meeting, the euro might go up again.
The euro fell below its upward trend line, but it stopped falling at the bottom of the Bollinger Bands. This might be a false signal, and it is still too early to say if the upward trend has really ended.
Euro-Dollar Price Range Forecast: 1.1540 – 1.1660 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.