Before the Federal Open Market Committee (FOMC) meeting, the euro rose above this year’s highest price and reached 1.1878, the highest level in four years.
Because it closed at the high, the buying trend is likely to continue.
The market has started to expect a 0.5% rate cut in the FOMC, while in Europe many think the European Central Bank (ECB) has finished cutting rates. This difference in direction supports euro buying.
If the FOMC only cuts rates by 0.25%, there is a high chance of temporary euro selling.
However, euro buying based on the difference in monetary policy is just beginning.
The level near 1.18, which was this year’s previous high in July, is now seen as the new support level.
Expected euro-dollar range: 1.1800 – 1.1920 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.