EUR/USD Signal: Short Bias After Fed's Hawkish 25bps Hike
Created on
Last updated
The Federal Reserve's quarter-point hike to a 3.75%-4.0% range this week has reset dollar momentum, pressuring EUR/USD as rate differentials widen in favor of the greenback. Fixed-income desks are already repricing forward guidance, and euro longs are unwinding into the move.
Signal parameters: Entry 1.0850, Take Profit 1.0730, Stop Loss 1.0910, Risk/Reward 1:2. The setup favors a break below near-term support with confirmation on a daily close under 1.0820.
Traders should scale position size given upcoming ECB commentary that could offset dollar strength; tightening the stop on any dovish Fed pushback is advisable.