The most important event of last week was the Fed's two-day meeting at which it was kept interest rates unchanged. It just was not a surprise but I strongly dovish statement could surprise. Members of the Fed seeing the turmoil surrounding the Chinese economy remained very cautious and almost unanimously spoke in favor of keeping the current interest rate. (Against the decision was Jeffrey M. Lacker, who voted in favor of increasing interest rates.) The Federal Reserve, arguing its decision, pointed to concerns about recent developments in the global economy that could reduce economic activity and increase inflationary pressure. Members of the Fed always agree as to a possible rate hike in 2015 but by reading the recent announcement by the Fed, it seems to be unrealistic. Thursday's meeting left a lot of uncertainty, which I so markets do not like it. Accordingly, after a meeting of euro strengthened against the dollar to 1.1442 level. Then on Friday there was a further, slight increases in the level around 1.1460, where there were strong declines. The end of the week dropped to the 1.1299 level.
The outlook for the EUR / USD on Monday:
Due to the large sell out that took place during the Friday session, we should see a correction. From a technical point of view, the currency pair should be directed towards resistance level at 1.1330. In the case of his defeat demand will have a chance to push the exchange rate at around 1,1350-72. Then the voice should reach the supply side, which should push the exchange rate towards recent lows at 1,1270-99.
In an alternative version we will see further falls without correction. In this case, the supply should lead to declines toward Friday's low at 1.1270 and then after the break, head for the support at 1.1240. The next support zone seems to be 1,12-1,1215.
The outlook for the EUR / USD on Monday:
Due to the large sell out that took place during the Friday session, we should see a correction. From a technical point of view, the currency pair should be directed towards resistance level at 1.1330. In the case of his defeat demand will have a chance to push the exchange rate at around 1,1350-72. Then the voice should reach the supply side, which should push the exchange rate towards recent lows at 1,1270-99.
In an alternative version we will see further falls without correction. In this case, the supply should lead to declines toward Friday's low at 1.1270 and then after the break, head for the support at 1.1240. The next support zone seems to be 1,12-1,1215.